In February 2025, the government of Claudia Sheinbaum announced the National Development Plan (PND) or better known as "Plan Mexico," with the objective of creating a comprehensive, long-term, government-driven strategy to transform Mexico's economy and social development, with clear goals through 2030. The core objectives of Plan Mexico include:

• Promote industrialization and innovationto achieve a more competitive economy.
• Relocation of industriesincrease national content in strategic production chains such as automotive, aerospace, electronics, pharmaceuticals, pharmaceuticals and automotive, aerospace, electronics, pharmaceuticals, among others, with a sustained level of domestic and foreign investment.among others, with a sustained level of domestic and foreign investment.
• Generate 1.5 million well-paying jobs in manufacturing and specialized services sectors.
• Increase the ratio of investment to investment to GDP to more than 25% by 2026 and more than 28% by 2030.
• Increase domestic domestic consumption to 50% in strategic sectors in strategic sectors and 50% of public procurement to be of national production, using public procurement as a lever for development, as part of the "Made in Mexico" program. Made in Mexico" program.
• Promote the training of 150 thousand professionals and technicians annually with education in line with strategic sectors.
• Increase access to financing for 30% of SMEs, versus the current 23%.
• Promoting corporate environmental sustainability with ESG practices (Environmental, Social and Governance) practices, clean energy and responsible waste management.
• Moving towards food self-sufficiency food self-sufficiency and the production of vaccines and medicines with advanced biotechnology in Mexico.
• Position Mexico among the world's top 10 economies and as one of the 5 most visited countries globally. and as one of the top 5 most visited countries globally.

SMEs and their importance for Mexico

SMEs are the backbone of the Mexican economy, with close to 4.9 million SMEs in Mexico. 4.9 million such companies (99.8% of all companies in Mexico), which generate close to 55% of Mexico's GDP. 55% of GDP and more than 72% of formal employmentaccording to figures from the National Institute of Statistics and Geography (INEGI). Plan Mexico recognizes this reality and seeks to reverse some global and local trends for this type of companies, with the creation of comprehensive policies that aim at facilitating theaccess to credit, training talent, integrating them into national production chains, and advancing in digitalization and sustainability, in order to consolidate the consolidation of a sustainable and sustainable economy.in order to consolidate inclusive and sustainable economic growth for the country.

Current situation and challenges of SMEs

Although Mexican SMEs represent the majority of the business fabric and employment, they face different challenges, such as:

• Low productivity and lack of technological updating.
• Limited access to formal financing and growth capital.
• High informality in many micro and small enterprises.
• Competition with large companies and challenges to access international markets.
• Need for training in administrative and market aspects.

What factors contribute to the growth of SMEs in Mexico?

• Access to financingThe availability of credit and formal financial support allows SMEs to invest in infrastructure, technology and working capital, facilitating their expansion and professionalization.
• Training and educationTraining programs in business management, administration, digital marketing and technology help them improve their productivity and competitiveness.
• Technological innovationThe adoption of new technologies facilitates operational efficiency, process improvement and the opening of new markets, especially in sectors such as e-commerce.
• Public policies and government supportInitiatives that facilitate procedures, offer advice and promote financial and digital inclusion contribute significantly to the development of the SME sector.
• Integration into production chains and international marketsLinkages with large companies and participation in exports expand growth opportunities for SMEs.
• Favorable macroeconomic conditionsEconomic stability, foreign investment and phenomena such as nearshoring generate a favorable environment for small and medium-sized companies to increase their production and competitiveness.
• Diversification and professionalizationMoving from simple, artisanal structures to organizational models with a greater division of tasks and partners contributes to sustainable growth.

These factors, combined, boost the capacity of Mexican SMEs to grow, generate employment and contribute to the country's economic development.

In summary, SMEs in Mexico are multiple, diverse and essential for economic and social development, with a great impact on employment generation and economic activity, although they face important challenges that require continuous and innovative support.

Cristian Rodriguez P.
Country Head Fynsa Mexico