Mexico is an ideal place for small businesses as it doesn’t require any minimum capital, and the process of creating a business is fairly straightforward. Nonetheless, acquiring the necessary permits can still be expensive.
The World Bank rated Mexico’s Ease of Doing Business index as 60 in 2019. It is an ideal locale for international businesses and entrepreneurs, making it a great opportunity to pursue one of the ten chosen small business ideas I present here.
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Check out this list of the top 10 small business ideas to start in Mexico.
#1. Amusement Park
Mexico draws great amounts of global travelers annually. A theme park has untold possibilities in the nation. Nonetheless, it is a capital-intensive venture. And circumspect preparation is essential in this kind of undertaking.
#2. Automobile
Mexico’s automotive sector makes up 17.6% of its manufacturing industry, and it contributes around 20% to the country’s overall GDP. Additionally, this sector employs over 1 million people.
Therefore, small-scale automobile businesses in the country have a great opportunity. To be successful, you must offer the right services and products to your target market.
#3. Start a Computer-Related Business in Mexico
Mexico is the 3rd biggest producer of computers globally, with both local and international corporations. As Latin America’s top producer of electronics and appliances from domestic companies, it offers numerous prospects for starting a little computer-related business.
#4. eCommerce Business in Mexico
eCommerce is an expanding sector in Mexico, making it a great space for young businesspeople to launch a startup. You can commercialize traditional products with an added benefit or bring something entirely new to the market. But particularly specialized offerings are gaining considerable recognition in the nation.
#5. Export Business
Mexico is a great country for exporting goods. You’ll find many opportunities in this market, such as cars, electronics, TVs, computers, cell phones, LCDs, oil and other oil products, silver, fruits and vegetables, coffee, and cotton.
#6. Fashion Designing Institute
Entrepreneurs with artistic minds and experience in fashion design can take advantage of a great business opportunity at a fashion institute. However, they must also have sufficient knowledge of the courses.
#7. Healthcare Business in Mexico
In 2014, total health expenditures amounted to USD 90 billion, and it has been increasing by more than 8% yearly. Healthcare spending takes up around 6.5% of the Gross Domestic Product (GDP) and is shared between government and private sectors in equal proportions.
According to projections, it is targeted to reach USD 103.4 billion by 2017. Consequently, this makes the healthcare industry an ideal area for investment if individuals have the pertinent knowledge and expert understanding.
#8. Start a Small Manufacturing Business in Mexico
Mexico is a manufacturing strength. It has an enormous yearly increase in its car and aerospace manufacturing areas.
The nation is responsible for more than 60% of Latin America’s manufacturing dispatches and benefits significantly from its interconnectedness of free-trade arrangements, particularly with the USA and Canada (NAFTA). Tiny, medium and colossal-scale fabrication is wildly gainful here.
Check out this list of ideas for small manufacturing businesses.
#9. Tourism
Tourism is one of Mexico’s most crucial industries. It is the fourth main source of foreign currency for the nation.
As a matter of fact, Mexico is quite welcoming to tourists and takes 8th place when it comes to global destinations most visited by international travelers, with more than 20 million tourists a year. In fact, the country stands 7th in the world when it involves all-time hits from travelers abroad.
#10. Vending Machine
Nearly half of the Mexican population is middle-class and retail sales have increased faster than GDP. Popular items sold in stores include food, drinks, tobacco, fuel, personal care products, clothing, and shoes. Thus, starting a vending machine business is ideal in this region.
What difficulties come with doing business in Mexico?
Obstacles to doing business in or with Mexico include:
- Make sure you know your product’s unique selling points (USPs) to stand out in an open and competitive market.
- Building and sustaining relationships with clients and distributors is important.
- Moreover, language differences may necessitate the use of interpreters.
- At last, make sure to comply with the legal requirements for labeling products in Spanish.
Tips for Launching a Business in Mexico
- Start off by conducting market research. Confirm that there is a need for your product or service.
- Starting a business in Mexico requires complying with different licensing, permitting fees, and regulations. Be sure to complete all of the requirements correctly.
- Furthermore, you can begin a business in the manufacturing industry. With China becoming increasingly more expensive, a manufacturing operation could be started here.
- Additionally, you’ll need to get used to the Mexican people’s work ethic and professional attitude.
- To ensure compliance with Mexico’s generous labor laws, businesses should consider hiring independent contractors instead of salaried employees due to the difficulty in terminating employed personnel.
- Subject to the provisions of the Foreign Investment Law, both local and international investors can own a business in Mexico.
Registering a business in Mexico can sometimes take up to several weeks and the amount of time needed depends on the type of special permits required. The government is making efforts to make the process faster, though it still varies from state to state.
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