In Mexico, do we undertake out of necessity or to pursue our dreams?

Mexico has its base of entrepreneurs in young adults between the ages of 26 and 35 with 41.4%, as mentioned by the Radiografía del Emprendimiento en México published by the Association of Entrepreneurs of Mexico (Asem). Why do Mexicans undertake, out of necessity or to follow their dreams?

GoDaddy’s 2022 Global Entrepreneurship Survey reveals that in Mexico, 47% of entrepreneurs start your business out of necessity or because of the desire to have an extra income, while in other countries such as the United States, Canada or Australia they start their companies pursuing a passion and not a need.

It can be very complex to combine a passion with a venture, especially when business niches are complex when landing an idea, or having the right budget when investing, so the need to have extra income It encourages Mexican entrepreneurs to venture into markets that, although they are not their passion, have a higher percentage of success and are accessible to their budget.

The National Institute of Statistics and Geography (Inegi) points out that the preferred sectors of Mexicans at the time of undertaking are those of food, technology and beauty. In technology, Mexicans opt for software, gadgets, video games, digital and cell services

While the Mexican Association of Direct Sales points out that in 2021 sales of beauty and personal care items grew by 8 percent.

Meanwhile, the gastronomy It represents 12.2% of all businesses in the country and generates just over two million jobs, according to Inegi, so everything related to this topic represents a great opportunity to undertake.

Youth, technology and digitization

GoDaddy’s 2022 Global Entrepreneurship Survey indicates that in Mexico it is the younger generations that are setting the pace of the entrepreneurial spirit, since more than a quarter of those surveyed (27%) are young adults and 97% of These entrepreneurs agreed that every business should have a website.

The survey was conducted among small businesses with fewer than 50 employees and covered eight countries: Australia, Brazil, Canada, Germany, India, Mexico, and the United Kingdom. The results highlight that entrepreneurs know about the importance of being part of a digital ecosystem and they believe it is something that will help their online businesses.

Globally, the report showed that India is the country where most respondents said feel confident to increase their income in 2023 (97%), followed by Brazil (92%) and Mexico (82%).

More than three-quarters of respondents in Mexico stated that an online presence helped their business grow, and 86% who maintain a website for their business stated that they created it on their own; however, security is an area that worries entrepreneurs, since 83% believe that small businesses are under the threat of cyberattacks.

Women, key piece

Of the countries surveyed, Mexico has one of the highest percentages of women entrepreneurs (59%), behind only Australia (60%) and the United States (62%). Likewise, technology is an ally of them, since the X-ray of Entrepreneurship in Mexico shows that 90% of the companies founded by women have digital presence and 54% have digital sales.

However, women are part of the statistic that in Mexico one undertakes more out of necessity than to pursue a passion, since the 24% of female entrepreneurs started their business because they needed increase their income level and 22% were looking for more flexible hours to be able to continue with their unpaid work activities.