Microbusinesses in Nuevo León face high costs to formalize: Canacope Monterrey

Monterrey, NL. One of the biggest obstacles to the operation and competitiveness of microbusinesses are the high costs of some procedures and permits; to obtain a land use license, from 50 square meters to 500 square meters, prices range from 1,458.94 pesos to 7,348.79 pesos; if the alcohol sale permit is added to that, it varies between 6,531 to 24,050 pesos.

“We require the state and municipal governments, a comprehensive strategy that facilitates the formality of businesses, which includes the reduction of the registration costs of companies, currently it costs on average between 18,000 to 20,000 pesos to formalize a small store and the fines are a closing factor”, alerted Catalina Domínguez, director of the National Chamber of Commerce in Small Business, Services and Tourism of Monterrey (Canacope).

Micro businesses must also have a contingency plan that costs from 6,000 pesos onwards; a civil protection kit (2,000 pesos); pay a garbage collection agreement (2,000 pesos); obtain a permit for an outdoor advertisement (1,500 pesos); and the predial (around 1,200 pesos).

“We have had some meetings with the authorities to reach an agreement, it seems to us that, for example, civil protection costs are high and it is mandatory to go to training. In the event that information is missing, micro businesses face fines from 1,996 to 36,000 pesos,” said the directive.

All this series of paperwork demotivates these businesses to be formal, lamented the board.

Canacope currently has 1,900 affiliates, however, in the state there were 134,527 economic units with 0 to 10 workers, which represents 94.9% of establishments, according to the 2019 Economic Census, carried out by the National Institute of Statistics and Geography ( Inegi).

Catalina Domínguez, explained that during the pandemic, some micro-businesses did close, however, the work of Canacope Monterrey has been to promote the Trades Training Center, to meet the annual goal of 15% increase in the educational level, incorporate a strategic training program with issues of formality and entrepreneurship; and establish a route brigade program to prevent fines.