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.
According to the World Bank, the Ease of Doing Business in Mexico improved to 38 in 2015 from 42 in 2014. Mexico is the best place for business even for foreigners. Here in this post, I have provided 10 chosen small business ideas in Mexico for your ready reference.
Things To Consider In Starting A Business In Mexico
- 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 China is becoming expensive, you can start a manufacturing operation here.
- Furthermore, you will need to accustom 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).
Challenges doing business in Mexico
Challenges when doing business in or with Mexico include:
- An open and competitive market, so be sure of your products 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
List of 10 Best Small 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. Thus, it creates immense scope for small scale automobile business 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 manufacturers 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.
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, cotton are the major export products from the country.
#6. Fashion Designing Institute
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 spends 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 a perfect field to invest in Mexico.
#8. 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).
#10. 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.
The process of registration to business launch 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.