Chapter | Mexico Competitiveness Report 2009 | 2009

Small and Medium Firm Lending in Mexico: Lessons and Current Issues

by Rodrigo Canales and Ramana Nanda

Abstract

Mexico is often cited as one of the world's most entrepreneurial countries in terms of the percentage of its population that has started or is in the process of starting a business venture. Yet Mexico does not seem to be very friendly to entrepreneurs, as confirmed by the fact that a large portion of new businesses is created in the informal sector. The authors identify the main obstacle to this area as the country's insufficient access to credit for small entrepreneurs. The chapter is devoted to assessing recent programs adopted in Mexico to foster SME competitiveness (including programs to increase capital availability) and draws some important conclusions for policymakers in their efforts to improve the micro-components of national competitiveness.

Keywords: Business Startups; Entrepreneurship; Policy; Competition; Mexico;

Citation:

Canales, Rodrigo, and Ramana Nanda. "Small and Medium Firm Lending in Mexico: Lessons and Current Issues." In Mexico Competitiveness Report 2009, edited by Ricardo Hausmann, Emilio Austin, and Erene Mia. World Economic Forum, 2009.