In Mexico, only 37% of businesses are created by women and although they reach profitability 13% faster than men, they face challenges such as digitization and little access to investment funds.
According to the Radiography of Entrepreneurship in Mexico 2021: Women edition, carried out by the Association of Entrepreneurs of Mexico (Asem) and the Friedrich Naumann Foundation, 90% of the businesses created by women have digital presence, compared to 87% of men; however, they take an average of seven months longer to start digital and invest 33% less.
This late digitization, according to Laura Ramírez Delgado, professor at the Tec de Monterrey Business School, may be due to a lack of time, since they spend more hours home care and children, leaving them with less time to run the business.
“Women in Mexico and in Latin America continue to be in charge of care tasks and unpaid work, so we have less time to undertake than men,” she explained.
This leads women entrepreneurs to undertake in social networks because it is easier, faster and cheaper than with a website or online store.
According to the x-ray, the main sales channels are WhatsApp (51%), Facebook (46%) and Instagram (33%), only 17% sell through marketplaces.
In fact, 31% of their businesses do not have digital tools, compared to 21% of them. “Although we have more and more access to digital education and you can learn practically anything on the Internet, you don’t have time”, which is why they prefer social networks, where sales are more direct and faster, because for 54% of entrepreneurs sales online are lower than in physical stores.
investment funds
The study highlights that nine out of 10 female entrepreneurs use own resources to start their business and after three years, the main source for 73% of them is the profits of the company; however, they have twice as much access to government funds.
The opposite happens with investment funds, since it is men who access 50% more. When they present themselves to investors, the questions are related to facing risk, while for them they are about how to grow the business.
“For example, a woman can be asked, how are you going to do to maintain the company?, while a man is, how can you attract more capital and make the money yield more?”, Laura specified.
Why do they fail?
The study highlights that women’s businesses fail due to lack of knowledge of the market, little access to financing and lack of time, while the main reason for starting a business is to seek personal growth, solve a problem in the market and search for flexible hours.
Likewise, for 61% the business is their main source of income, for 23% the second and for 16% it is extra income. In addition, the companies founded by them hire more women.
“70% of the collaborators of the companies founded by them are women, while in men’s businesses they are only 37%,” Juana Ramírez, president of Asem, said in an interview.
She explained that the majority of women undertake services and products, and in sectors such as consulting, retail consumption, marketing and gastronomy, the greatest gap is in technology and information technology. Meanwhile, the average life of the enterprises is five years, when theirs reaches six.
The study highlights that the greatest difficulties to undertake are the high costs of the fiscal structure and the lack of financing. For this reason, Juana emphasizes the need to create friendly schemes for the payment of taxes and employer contributions, and promote business development programs to improve management, profitability and competitiveness.
“We have to continue working on having tax incentives that make business models attractive from formality, we have a lot to do there”, he concluded.
hartford car insurance shop car insurance best car insurance quotes best online car insurance get auto insurance quotes auto insurance quotes most affordable car insurance car insurance providers car insurance best deals best insurance quotes get car insurance online best comprehensive car insurance best cheap auto insurance auto policy switching car insurance car insurance quotes auto insurance best affordable car insurance online auto insurance quotes az auto insurance commercial auto insurance instant car insurance buy car insurance online best auto insurance companies best car insurance policy best auto insurance vehicle insurance quotes aaa insurance quote auto and home insurance quotes car insurance search best and cheapest car insurance best price car insurance best vehicle insurance aaa car insurance quote find cheap car insurance new car insurance quote auto insurance companies get car insurance quotes best cheap car insurance car insurance policy online new car insurance policy get car insurance car insurance company best cheap insurance car insurance online quote car insurance finder comprehensive insurance quote car insurance quotes near me get insurance