The small businesses have had to raise the prices of their products to cope with the losses caused by insecurity, such as extortion, theft, and damage caused by crime. The president of the National Alliance of Small Merchants (Anpec), Cuauhtémoc Rivera, reported that insecurity is costing store owners, wine shops, and neighborhood businesses about 15% of their income.
Rivera explained that this situation has led small businesses to pass on the expenses incurred to protect themselves from insecurity to consumers. From the installation of bars, cages, windows, and security cameras to the payment of protection fees, all of this ends up affecting product prices. According to him, consumers are the most affected by these additional costs.
Regarding the products that have increased in price due to insecurity, price hikes are noted in various categories, especially seasonal items with high demand. Rivera mentioned that merchants often adjust prices on higher demand products in an attempt to compensate for some of the costs incurred from insecurity and extortions they face.
In terms of losses due to insecurity, it is estimated that 40% of small businesses suffer more intensely from the onslaught of crime. Given this scenario, many merchants have had to invest in security measures such as cages, bars, and cameras to try to deter criminals. The cost of these measures, along with the payment of protection fees, represents an average of 15% of the businesses' income.
The president of Anpec revealed that, due to these conditions, sector profits have decreased by almost 50% in recent years. Businesses that used to have monthly sales of 40,000 pesos before the pandemic are now only reaching between 20,000 and 25,000 pesos. This has led small merchants to work longer hours for less profit.
The states most affected by insecurity, crimes, and extortion through protection fees are Sinaloa, Guerrero, Guanajuato, Querétaro, Colima (especially Manzanillo), Tabasco, Tamaulipas, State of Mexico (especially Ecatepec), and Mexico City (particularly Iztapalapa and densely populated areas).
