Adding more women to formal entrepreneurship helps the country’s economic growth

The pandemic evidenced the need to add more women to the formal economy, because although they are the majority, the 82% are in informalitywhich stops economic growth.

“Mexico cannot progress without adding women to the economy, to value chains, because we represent the 52% of the population in Mexico”, highlighted Sonia Garza, National President of the Mexican Association of Women Heads of Companies (AMJE) during her participation in the 2022 Entrepreneurial Summit held by the Mexican Association of Entrepreneurs (Asem).

In Mexico City alone, of the 485,500 economic units that the entity has, 90% are micro, small and medium enterprises, of which the 55% are in informalityhighlighted Fadlala Akabani Hneide, Secretary of Economic Development of CDMX.

He added that to really have an economic recovery and progress, it is necessary to promote entrepreneurs because “they are the basis of the economic structure of Mexico City.”

Likewise, more than 60% of the MSMEs in CDMX are led by women and there are more women working in the mayor’s offices further from the city center, such as Tláhuac, Milpa Alta, Xochimilco and Iztapalapa, in addition, the activities they carry out are mostly informal. “As we get closer to the center of the city, the formality increases.”

In fact, only 37% of businesses in Mexico they are founded by a woman and despite the fact that they are profitable 13% faster, the lack of liquidity, time and access to capital are a limitation for their growth.

For this reason, Garza pointed out the importance of formality, because access to better opportunities to develop a business, because it is easier to access financing and training.

Women pay loans on time

Akabani specified that women pay a lot, since of the credits granted by the Fund for Social Development, 73% of the requests are from them and the 90% pay on time. “That is, women respond appropriately to the credit they acquire with the government of Mexico City.”

Women entrepreneurs are enthusiastic and take more courses than requested to access financing and continue to train you.

“Practically 70% of the credits we grant are for women and the majority are located in the largest city halls; Iztapalapa and Gustavo A Madero. They participate from women who are dedicated to cambaceo, catalog sales, or who have a small store from their home, or who want to open an accessory from their home or rent it. They are the first to dare to set up an established business, they are the basis of the economic structure of CDMX”.

Technology, driver of entrepreneurship

Digital transformation is essential for encourage female entrepreneursas defined by Isaías López, director of regulations of the Ministry of Economy.

“Before the pandemic, it was considered that a company needed or would have added value if it placed its products or services in an online sales channel, and now it is practically impossible for a company not to be able to incorporate that component into its traditional business.”

Therefore, in the last year the Ministry of Economy has trained more than 25,000 companies nationwide, as they consider it important to give them the necessary tools to know how to use credit and boost their business.

Akabani agrees on this, who says that the post-pandemic is widening the inequality gap in companiesbecause large companies have the capacity to generate an online sales platform, but micro-enterprises should not be left behind and should be encouraged to join digital sales.

“The micro-enterprises, which are the majority, cannot be left behind; We are working in this direction, because we are interested in closing the inequality gaps between people, gender and between companies”.