Mexico is a small business-friendly country in the North American continent. It is a growing economy and boasts a diverse market. Hence, the country offers a wide range of opportunities for entrepreneurs and business owners. The Mexican market offers a variety of feasible company ideas ranging from agriculture to technology for exploring, whether you are a local or an international investor. In this article, we will discuss the best business ideas in Mexico and answer some frequently asked questions (FAQs) to help you kickstart your entrepreneurial journey.
For the last 40 years, the country has seen a huge increase in the Gross Domestic Product(GDP) index. As per the latest report, the GDP has reached $1.42 trillion with a per capita GDP of $11091 at the end of the year 2022.
List of 28 Best Business Ideas in Mexico
#1. Agriculture and Agro-Based Business
Mexico has rich agricultural resources. Hence there are multiple opportunities in farming, food processing, and agro-based products. You can consider investing in crops like avocados, tomatoes, or berries, which have high demand in domestic and international markets. Also, consider setting up agro-processing units for producing packaged foods, oils, or spices.
The automotive sector accounts for 17.6% of Mexico’s manufacturing sector. The automotive industry contributes about 20 percent of Mexico’s total GDP and more than one million people are employed across the country.
Thus, it creates immense scope for small-scale automobile businesses in the country. However, you must offer the right service or products to your audience.
#3. Start a Computer-Related Business in Mexico
Mexico is the third-largest manufacturer of computers in the world with both domestic and foreign companies. The country is Latin America’s largest producer of electronics and appliances made by domestic companies. Therefore, it creates an immense opportunity to start a small computer-related business here.
#4. eCommerce Business in Mexico
eCommerce is a booming industry in Mexico. Thus, it is a perfect startup opportunity for young entrepreneurs. You can sell conventional products with value addition or just offer something new. However, niche offerings are getting considerable success in the country.
#5. Export Business
Mexico is a country of export. You can find a lot of opportunities in this segment. automobiles, electronics, televisions, computers, mobile phones, LCDs, oil and oil products, silver, fruits, vegetables, coffee, and cotton are the major export products from the country.
#6. Fashion Designing Institute
The Fashion design institute business opportunity is perfect for entrepreneurs who have sufficient knowledge of the subject. However, you must have an artistic mind and adequate experience in the courses.
#7. Healthcare Business in Mexico
Total healthcare spending in 2014 was USD 90 billion. And it is growing at more than 8% year on year. Healthcare spending is at around 6.5% of GDP and is split 50/50 between the public and private sectors. By 2017 it’s expected to reach USD 103.4 billion. Therefore, this is the perfect industry to invest in healthcare-related startups in Mexico if you have the required experience and knowledge.
If you are tech-savvy and have some experience in the financial sector, investing in a fintech business can be a good investment decision. There has been a huge increase in fintech startups recently in major cities like Mexico City, Monterrey, and Guadalajara.
#9. Start a Small Manufacturing Business in Mexico
Mexico is a manufacturing powerhouse. It has huge annual growth in its vehicle and aerospace manufacturing sectors. The country is responsible for more than 60% of Latin America’s manufacturing exports and benefits hugely from its network of free trade agreements, especially with the USA and Canada (NAFTA). Small, medium, and large-scale manufacturing is hugely profitable here.
#10. Tourism & Hospitality
Tourism is one of the most important industries in Mexico. It is the fourth largest source of foreign exchange for the country. The country is the eighth most visited country in the world (with over 20 million tourists a year). As a matter of fact, Mexico happens to be a popular tourism-friendly country and is ranked 6th in the world in the category of most visited destinations by international tourist arrivals.
You can consider starting a boutique hotel, bed and breakfast, or eco-resort in scenic locations to cater to both local and international tourists.
#11. Medical Cannabis
Another industry that has a huge promise in the future in Mexico is medical cannabis. It is worth mentioning that medicinal cannabis is legal in Mexico provided it is less than 1% THC. Also, the climate and soil of the land are ideal for growing marijuana.
#12. Vending Machine
Over 48% of Mexico’s population is middle class and in recent years the retail sector has grown faster than GDP. The fast-moving retail products include food, beverages, tobacco, fuel, personal care, clothing, and footwear. Therefore installing a vending machine is a perfect business here.
#13. Amusement Park
Mexico attracts huge numbers of international tourists throughout the year. An amusement park has great potential in the country. However, it is a capital-intensive business. And thoughtful planning is important in this business.
#14. Food and Beverage Industry
The food and beverage industry is evergreen in Mexico. You can consider opening a restaurant, café, or food truck that serves authentic Mexican cuisine. You can also explore niche markets by offering organic, healthy, or gourmet food options.
#15. E-commerce and Online Retailing
The rise of e-commerce presents lucrative opportunities in Mexico. Think of starting an online store that sells products ranging from fashion and electronics to beauty and home essentials. It is advisable to leverage the growing trend of online shopping to reach a broader customer base.
#16. Renewable Energy Solutions
The government of Mexico is focusing on developing renewable energy solutions int he recent years. Hence projects like solar panel installation, wind power, and biomass are gaining traction in the country. You can also venture into renewable energy consultancy, distribution, or installation services.
#17. Real Estate and Property Development
The booming real estate market in Mexico offers a variety of business opportunities. It includes property development, construction, and rental management. You can consider investing in residential or commercial properties that can provide substantial returns.
#18. Health and Wellness Services
The wellness industry is on the rise in Mexico. You can start a gym, yoga studio, spa, or wellness center that offers fitness classes, holistic therapies, and wellness products.
#19. Information Technology (IT) Services
Technology adoption has increased significantly increased in Mexico in the last few years. IT services like software development, mobile app development, and digital marketing are in high demand. You can think of establishing an IT firm to cater to businesses’ tech needs.
#20. Education and Training Institutes
Investing in education and training centers is not only profitable but also rewarding. You can start language schools, skill development centers, or tutoring services to meet the educational needs of students and professionals.
#21. Arts and Crafts Business
Consider promoting local craftsmanship by starting an arts and crafts business that produces handmade products. It can be pottery, textiles, jewelry, or home décor items.
#22. Eco-Friendly Products
There is a growing emphasis on eco-consciousness in Mexico. Hence, selling eco-friendly products like biodegradable packaging, organic skincare, or sustainable fashion can be a profitable venture.
#23. Transportation and Logistics Services
As trade and commerce grow, the demand for reliable transportation and logistics services is on the rise in the country. You can consider starting a transportation company or logistics firm to cater to the supply chain needs of businesses.
#25. Social Media Management
There is a big demand for social media professionals in Mexico. If you have expertise in managing social media management, consider helping businesses strengthen their online presence by offering social media management and digital marketing services.
#26. Mobile App Development
With the rise in mobile app usage, there is a rising demand for mobile app development services. You can develop and sell mobile apps for businesses or individuals.
#27. Translation and Interpretation Services
Mexico is a culturally diverse country. Hence, translation, and interpretation services are essential for communication between businesses and individuals.
#28. Recycling and Waste Management
Establish a recycling and waste management business to address Mexico’s environmental concerns.
Frequently Asked Questions
Why invest in Mexico?
Mexico offers a growing economy, strategic location, free trade agreements, and a supportive business environment.
What are the advantages of starting a business in Mexico?
There are several advantages to starting a business in Mexico. Some of the key benefits are listed below:
- Strategic Location: Mexico’s proximity to the United States and Latin American markets makes it an ideal location for international trade.
- Economic Growth: The country has experienced steady economic growth and offers a stable business environment.
- Free Trade Agreements: Mexico has a network of free trade agreements, facilitating access to global markets.
- Young Workforce: The country boasts a large, skilled, and relatively affordable workforce.
- Government Support: The Mexican government offers various incentives and support programs for foreign and domestic businesses.
- Tourism Potential: With its rich culture, history, and natural attractions, the tourism sector in Mexico has vast potential.
- Emerging Technologies: Mexico’s technology sector is on the rise, providing opportunities in IT services and software development.
What are the Key Steps to Follow to start a business in Mexico?
Below are some of the important steps one must follow to launch a successful business venture in Mexico:
- Market Research: Conduct thorough market research to identify business opportunities, target demographics, and competition in your chosen industry.
- Legal Requirements: Familiarize yourself with the legal procedures and regulations for business registration, permits, and licensing.
- Cultural Awareness: Understand and respect the local culture and customs to establish fruitful relationships with customers and partners.
- Language Skills: While English is widely spoken in business settings, learning some basic Spanish can be advantageous for communication.
- Financial Planning: Create a comprehensive business plan and financial projections to assess the viability and sustainability of your venture.
- Networking: Build a strong network of contacts, including potential clients, suppliers, and government authorities.
- Location: Choose a suitable location for your business, considering factors like accessibility, infrastructure, and proximity to suppliers and customers.
What are the best industries to invest in Mexico?
The best industries include agriculture, tourism, renewable energy, manufacturing, and technology.
What are the financing options for starting a business in Mexico?
Financing options include bank loans, venture capital, government grants, and crowdfunding.
How do I navigate the cultural and language barriers in Mexico?
Learn some basic Spanish, respect local customs, and seek guidance from local partners.
How do I register my business name and logo in Mexico?
Register your business name and logo with the Mexican Institute of Industrial Property.
How long does it take to register a business in Mexico?
The process of registering a business can usually take a couple of weeks. However, it might take longer if they need special licenses. The government is actively working to streamline the process and it varies state by state in Mexico.
What are the tax implications of starting a business in Mexico?
Familiarize yourself with the tax laws and regulations in Mexico to ensure compliance.
How do I hire and manage employees in Mexico?
Understand labor laws and regulations when hiring and managing employees.
What are the potential challenges of doing business in Mexico?
Some of the major challenges you might face while starting a business in Mexico include bureaucracy, corruption, and competition.
How do I ensure the success and growth of my business in Mexico?
Focus on market demand, customer satisfaction, and continuous improvement to ensure success and growth.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.