The sector of micro, small and medium enterprises (Mipymes) in Mexico is of vital importance, representing around 99 percent of establishments and generating approximately 78 percent of formal employment in the country. Despite this, bank credit directed at these companies is insufficient, constituting less than 10 percent of Gross Domestic Product (GDP). Specifically, credit allocated to Mipymes is even lower, representing only 1.7 percent of GDP.
The signing of an agreement between the Association of Banks of Mexico and the Ministry of Finance during the Banking Convention aims to promote financing towards Mipymes. The question that arises is whether this event will be merely a formality or if it will truly mark a significant change in access to credit for this business sector.
Some of the factors that limit access to credit for Mipymes in Mexico include the lack of guarantees and a solid credit history, high financial costs, complicated bureaucratic processes, a lack of financial education, and the high informality in which many of these companies operate. These obstacles have led to the closure of around 1.4 million companies in Mexico between 2019 and 2023, contributing to the lack of growth and economic development.
For the signed agreement to produce tangible results, several concrete actions are proposed that could address these challenges. Among these are strengthening guarantees through government-backed funds, simplifying credit processes, promoting financial education, encouraging competition in the financial sector, and incentivizing the formalization of informal businesses.
It is crucial that there is a genuine willingness on the part of banks and the public sector to implement the necessary changes to improve access to credit for Mipymes in Mexico. Otherwise, the agreement risks being merely a symbolic gesture, with no real impact on the economy. Compared to other countries with similar income levels like Brazil and Chile, where access to credit for Mipymes is much more significant, Mexico has a large margin for improvement in this aspect.
