Small and Medium Enterprises (SMEs) represent 52% of the Mexican GDP
- SMEs contribute to the creation of 7 out of 10 formal jobs
- These small businesses do not meet bank lending criteria due to the lack of financial information, informality, and family management
- Over half of small businesses funding comes from suppliers and less than a third from the banking sector
- Funding to financial intermediaries that currently serve the SME segment offering advisory services are attractive investment opportunities to increase financing access to SMEs
- The strict selection criteria of the development banks and pension funds make financial intermediaries target only less risky sectors such as large companies
- The country needs greater resources to SMEs loans and further advice and support to achieve a change towards best practices. This should reduce implicit risk and increase the credit allocation amount at attractive interest rates