Mexico is a small business-friendly country in the North American continent. With no minimum capital requirement, launching a business takes less than 10 procedures. However, completing licensing requirements remains costly.
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 $129 trillion with a per capita GDP of $9934 at the end of the year 2021.
According to the World Bank, the Ease of Doing Business in Mexico is ranked 60 as per the latest data in the year 2019. Mexico is the best place for business even for foreigners. Here in this post, we have provided a list of the most profitable small business ideas in Mexico for your ready reference.
List of 12 Best Business Ideas in Mexico
#1. 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.
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 the 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.
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 7th in the world in the category of most visited destinations by international tourist arrivals.
#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.
What are the challenges of doing business in Mexico?
Challenges when doing business in or with Mexico include:
- An open and competitive market, so be sure of your product’s unique selling points (USPs)
- Take time to build and maintain relationships with clients and distributors
- In addition, language barriers mean that interpreters may be required
- Finally, check the legal requirement to label products in Spanish
How to Start A Business In Mexico – Important Tips
- First of all, do some market research. Ensure that your product or service has a demand in the market.
- Mexico has a variety of business launch requirements. This is from licensing to permitting fees. Complete the entire compliance procedure with rules and regulations.
- In addition, you can start a business in the manufacturing sector. Due to manufacturing costs in China becoming expensive, you can start a manufacturing operation here.
- Furthermore, you will need to accustom yourself to the professional culture and attitude of the Mexican people.
- Mexican labor laws are favorable to employees. The government is extremely protective of employees and it can be difficult to fire anyone. Hence, employ independent contractors.
- Both resident and non-resident foreign investors can own a Mexican business (subject to the provisions of the FIL).
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.
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 business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.