How are SMEs capitalized in Mexico? Know the panorama of access to entrepreneurial capital

After the financial blow generated by the pandemic, businessmen and entrepreneurs have turned their eyes to entrepreneurial capital and personal capital to acquire monetary assets. For a lot of SMEs, entry to capital and funding options stay a thriller and a path filled with obstacles.

The accelerator and entrepreneurial capital fund WORTEV, ready with the assist of the Affiliation of Entrepreneurs of Mexico (ASEM) the examine Enterprise and Cash: Panorama of entry to capital for SMEs in Mexico , which supplies a whole overview of the notion of capital funds.

Among the many primary findings, greater than 50% of entrepreneurs guarantee that their capital wants grew dramatically within the final 12 months and personal fairness funds rank second as the principle supply of funding amongst entrepreneurs with 18.36% of Entrepreneurs surveyed, solely after banks and nearly on a par with suppliers (18.11%), which for a few years had been the principle sources of leverage for SMEs.

The pandemic eradicated greater than one million small corporations, however the progress within the visibility of personal fairness funds and even the consolidation of the primary Mexican unicorns, are reaching the curiosity of corporations in these financing or funding options.

“We face an encouraging outlook for the capitalization of ventures and corporations which can be reworking the long run. In current months we see increasingly more Mexican unicorns, as a result of international funds have set their eyes on Mexico and valued the nation’s enterprise fashions, “stated Denis Yris, CEO of WORTEV.

Relating to the circumstances underneath which SMEs obtained the capital, the examine reveals that greater than 31% of entrepreneurs obtained between 500,000 pesos and 1 million pesos of their final financing spherical, adopted by those that raised between 1 and 50 million pesos. . Whereas 58% stated they had been prepared to offer between 20 and 30% of their firm to attain that capital.

Undoubtedly, one of many primary conditions that resulted from the COVID pandemic had been drastic modifications within the varieties and methods of the marketing strategy, so among the many primary goals of entrepreneurs to acquire capital have been to extend their manufacturing and broaden their enterprise, translated into greater gross sales and enhance presence in different markets.

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In response to their perspective and notion concerning the completely different financing options, the examine divided SME managers into six primary profiles: Organized, who’ve the very best management over the monetary goals of their firm. Decided and Strategic , preferring to resort to formal sources of financing and Dangerous , Conventional and Reactive , who’re unaware of monetary plans and are much less ready on this space.

The cataloging of those profiles in response to the examine exhibits that within the present state of affairs, there are more and more extra ready entrepreneurs and conscious of the dangers and alternatives that exist on this course of.