According to the National Alliance of Small Merchants (ANPEC), 6 out of 10 people in small businesses are women entrepreneursreferring particularly to grocery stores, which means that they are the ones who lead the main supply channel for Mexican families.
Grocery stores are considered one of the viable businesses for women, since having a small store, gives them the chance to focus on home activities, their children, but also develop business skillsbecause it allows them to manage a micro-enterprise, employ other people, generate income for their family and have independence, they become entrepreneurs.
Grocery stores, allies of women entrepreneurs
According to figures from the National Institute of Geography and Statistics (INEGI), in 2020 reported 1.2 million active grocery stores in Mexicowhich generated 1% of the country’s total Gross Domestic Product (GDP), that is, 300,000 million pesos annually.
If we cross figures, only the women in charge of a grocery store contribute 180,000 million pesos to the national GDP.
Why do women start?
Although it does not seem to be a significant number, the contribution of women to the GDP is relevant since it speaks of their involvement in the labor and economic world. Women have shown over the years that they have great leadership abilities, as entrepreneurs day by day they make their way in a world where gender inequality continues to predominate.
A study carried out by Almacén Gurú indicates that the Corner stores have contributed to reducing the gender gap, 47.6% of the owners of one are women. Women entrepreneurs have played a very important role in society, particularly in the economic life of the country with their contribution to GDP, but also as heads of families, since they are providers and breadwinners for many Mexican families.
Reasons to undertake
According to INEGI, the motivations of women to undertake are:
- 29% want to have their own business and independence
- 20% need to raise their quality and standard of living
- 20% do it for fun
- 18% seek to continue the family business
- 13% because they lost their job and decided to undertake
These motivations are not exclusive of those who decided to open a grocery store, where a business of this type gives them the motivations indicated by the institute.
There are challenges to overcome
Despite this scenario where women are seen as a key link in the Mexican economy, there are still many challenges to overcome. According to the Mexican Institute of Competitiveness (IMCO), Mexico has a rate of female economic participation (43.6%), lower than the world average (48.5%) and even lower than that of economies such as Colombia (50.3%) or Brazil. (49.5%). The same institute, in collaboration with the Coordinating Council of Business Women (CCME), conducted a survey of more than 2,000 women in order to delve into the barriers that prevent women from developing and growing their businesses.
This study was able to identify the three main barriers that hinder female entrepreneurship, where the following stand out: 1) the costs associated with formality in time and financial resources; 2) unpaid work and 3) the lack of financing that limits them to undertake.
“Only 5% of the women surveyed in this study reported receiving support to obtain financing, and the majority of them (58%) received it through a government program. In addition, two out of 10 women surveyed reported not having their own income, and within this universe, 83% responded that the main reason they have not started a business is due to lack of financing”, the study reports.
In conclusion…
In support of women in charge of micro-businesses, there are non-banking financial technological solutions that have the capacity to grant immediate loans through the entrepreneurs’ own cell phones, without paying interest and without consulting their credit history, and whose purpose is to make them start and grow their businesses. The statistics speak for themselves, in terms of their participation and impact, it is necessary to potentiate them.
Alberto Bonetti Friaz CEO and co-founder of YoFio. He has more than 25 years of experience holding C-level positions in the main banks and fintechs in LATAM. He led and was part of the founding team of Banco Promerica in the Dominican Republic, turning a small credit card operation from scratch to becoming the sixth largest credit card issuer in the country. As CRO at YellowPepper’s, he was instrumental in the acquisition by VISA a few years later.