Mexico is emerging as one of the most attractive destinations for technology, startups and entrepreneurship in Latin America. The combination of a growing economy, a highly trained workforce and a business culture with a focus on development have been key factors in attracting investors and entrepreneurs during recent months.
Founders of technology startups from other countries have found a great market opportunity in the country, as it not only has highly trained talent, but also offers many benefits regarding location, remote work, time zone, and a large internal market.
It surprises me how many times I have been asked, why did they start Pacto in Mexico? There are many reasons, from the 126 million inhabitants, the millions of annual tourists and more than 600,000 restaurants and bars in the country. Basically, it is a massive market full of undeveloped potential.
Mexico destination for startups
Some of the factors that are triggering this growth are:
Closeness to the United States
The border of more than 3,000 km, which Mexico shares with the United States, offers a significant advantage to foreign startups that are interested in reaching the North American market because thanks to the proximity that exists, it is possible for them to carry out a much more fluid commercial exchange. since the country is one of the most important entry and exit points.
Similar time zone
The time zone that both countries share also represents an important factor when opening a company or hiring collaborators, since, having similar hours, organization, teamwork, project monitoring and real-time response is much more efficient and therefore collaboration is much more fluid and productive.
Strategic location
The geographical location of the country allows Mexico to be seen as an important transit platform not only to North America and Latin America, but also to the Atlantic and the Asia-Pacific region, since its privileged position favors access to the main centers. of consumption worldwide, which translates into a reduction in logistics costs and an acceleration in response time.
Economic development
According to INEGI data from 2021, the population of the Mexican Republic exceeds 129 million inhabitants, of which 58.7 million (45.35%) correspond to the economically active population (PEA), which means an expansion in the domestic market that It makes the country a highly attractive market for startups, both to sell their services and products and to recruit qualified talent.
Various regions promoting the technological ecosystem
Mexico City
It is one of the most sought after cities by “digital nomads” around the world, due to its constantly growing entrepreneurial community, lifestyle and affordable income for foreigners.
Guadalajara
The capital of Jalisco has also become an important hub for technology companies. The city has a highly trained workforce in areas such as engineering, information technology and computer science. In addition, the presence of large technology companies, such as IBM, HP and Wizeline, have contributed to the creation of a growing entrepreneurial ecosystem.
New Lion
The northern state recently presented its “Startup Powered by Nuevo León” program, designed to stimulate entrepreneurship and innovation in the region. This initiative will offer a wide variety of tools and assistance for entrepreneurs such as business incubators, mentoring programs and financing.
Queretaro
In addition, the municipality of Querétaro announced at the end of 2022 that the Innovation and Creative Technology Center called “Bloque” is under construction. This center will seek to catapult the digital, technological and video game industry in the State through education and promotion of entrepreneurship.
Mexico represents the future: talent, abundance of natural resources, diversified economy, growing technology sector and proximity to US/Canada markets. While other markets stumble, Mexico is rising.
Ryan Croft CEO & Cofounder of Pacto, entrepreneur resident at Georgetown University’s McDonough Business School. Previously, he was a co-founder of TransitScreen, a Board Director of ACT (Association for Commuter Transportation), a Trustee of the Federal City Council (Washington, DC), a Founders Fellow of On Deck, a Latitude Fellow, and a Board Director of Give and Surf, a non-profit organization based in Bocas del Toro, Panama. Sector focus: Entrepreneurship in the US and Latin America, payments, fintech, proptech, SaaS and e-commerce.