How Mexico's Economy Encourages Small And Medium Enterprise?
Mexico has become one of the centers of investment for companies across the world and there are many tempting factors why Mexico is usually on top of the list of places that global businesses are contemplating moving into when they are ready to make investments in different countries. The impact of direct outside investment on the Mexican economy implies that for many regions of Mexico, this investment is encouraged. The other side to the investment involves the development of small and medium enterprises (SMEs) by global companies. This investment is considered vital to Mexico, as it helps in the creation of small businesses within the country itself.
Direct foreign investment (inversion extranjera) is becoming essential to the economy of this South American state, and the country has become a necessary site for global companies to invest in, because of the strategies adopted by Mexico. These strategies have included a variety of vital treaties between different South American countries that has increased the export and import possibilities for investors in the country. Such treaties have also encouraged the expansion of SMEs, depending upon the trade from different nations to extend their sales and reach more potential customers.
In Mexico, these small and medium enterprises are known as PYMEs (the Spanish-language version of SMEs), and are an important tool in keeping the Mexican economy working full time. They are usually divided into two different classifications of business: the family owned companies, and businesses that are not family owned. Such classifications assist the Chamber of Commerce in Mexico to know the actual desires of a business, and assist it to work towards expansion. While foreign investment starts to create small and medium enterprises, they are even classed with this system, although the businesses may have totally different desires from the quality Mexican family-run company.
Since 2004, Mexico has been developing a program intended to encourage small and medium business growth in the country. It is estimated that about 95 percent of all Mexican companies are small or medium in size, so it's made sense for the government to develop such businesses and guarantee their growth. The majority of these small and medium companies are involved in manufacturing, commercial, or service-style operations.
As a universal rule, such business that have started as family-owned companies are pretty small (usually less than 10 workers), and even have difficulty extending their growth into different nations. Non-family concerns could be franchises which encourage foreign investment (inversion extranjera), or could be a section of a global enterprise that is attempting to determine itself in Mexico. These businesses would not often have a lot of problem with growth, or using Mexico's treaties to try and increase exports.
Direct foreign investment (inversion extranjera) is becoming essential to the economy of this South American state, and the country has become a necessary site for global companies to invest in, because of the strategies adopted by Mexico. These strategies have included a variety of vital treaties between different South American countries that has increased the export and import possibilities for investors in the country. Such treaties have also encouraged the expansion of SMEs, depending upon the trade from different nations to extend their sales and reach more potential customers.
In Mexico, these small and medium enterprises are known as PYMEs (the Spanish-language version of SMEs), and are an important tool in keeping the Mexican economy working full time. They are usually divided into two different classifications of business: the family owned companies, and businesses that are not family owned. Such classifications assist the Chamber of Commerce in Mexico to know the actual desires of a business, and assist it to work towards expansion. While foreign investment starts to create small and medium enterprises, they are even classed with this system, although the businesses may have totally different desires from the quality Mexican family-run company.
Since 2004, Mexico has been developing a program intended to encourage small and medium business growth in the country. It is estimated that about 95 percent of all Mexican companies are small or medium in size, so it's made sense for the government to develop such businesses and guarantee their growth. The majority of these small and medium companies are involved in manufacturing, commercial, or service-style operations.
As a universal rule, such business that have started as family-owned companies are pretty small (usually less than 10 workers), and even have difficulty extending their growth into different nations. Non-family concerns could be franchises which encourage foreign investment (inversion extranjera), or could be a section of a global enterprise that is attempting to determine itself in Mexico. These businesses would not often have a lot of problem with growth, or using Mexico's treaties to try and increase exports.
Economia - 4. Apr, 13:45
