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Small and medium-sized enterprises (SMEs) and entrepreneurs are fundamental drivers of innovation, economic growth and job creation. As a result, they also play an important role in fostering social development and cohesion. Because SMEs account for a large share of employment in Mexico, policies to foster entrepreneurship could be front and centre in the reform agenda of the new Mexican Government.
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The review was undertaken by the OECD Centre for Entrepreneurship, SMEs and Local Development (CFE) at the request of the Mexican Ministry of Economy and the Association of State Economic Development Secretaries (AMSDE). It is part of the Programmes ofWork of the OECD’s Working Party on SMEs and Entrepreneurship (WPSMEE) and the Local Economic and Employment Development Committee (LEED).
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Twelve years ago, the Mexican government started a concerted policy effort to support small and medium-sized enterprises (SMEs – firms with up to 250 employees) and stimulate new firm creation in order to accelerate economic growth, create jobs and reduce poverty. During 2001-06 this involved the creation of an Under Ministry of Small and Medium Enterprises in the Ministry of Economy to promote and co-ordinate policies, the establishment of a central budget in the SME Fund, and the creation of SME programmes focused on access to finance and innovation.
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In 2000, the Mexican government acknowledged the key role that small and medium-sized enterprises (SMEs) and entrepreneurship play in guaranteeing the future prosperity of Mexico by making more and better jobs, more and better enterprises and more and better entrepreneurs the foundation of a new SME and entrepreneurship policy agenda. This agenda was carried through by the actions of the Entrepreneurial Development Plan (EDP) 2001-06, co-ordinated by a newly created Under Ministry of SMEs within the Ministry of Economy. The achievements of that period were assessed in an OECD review of SME policy in Mexico published in 2007 [OECD (2007), SMEs in Mexico: Issues and Policies, OECD Publishing, http://dx.doi.org/10.1787/9789264031791-en].
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This chapter examines the current state and recent evolution of entrepreneurship and SME performance in Mexico. It presents key structural indicators such as the SME share in enterprises, employment and GDP, the sector and size distribution of SME activity, business start-up rates, entrepreneurial intentions, numbers of growth firms and the size of the informal economy. It also analyses performance indicators including productivity, exports, investment and innovation.
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This chapter examines the framework conditions and business climate for SMEs and entrepreneurship. It covers ease of doing business, macro-economic conditions, human resources, access to financing, tax and social security, product market conditions, business law and regulation, foreign direct investment and the innovation system. Strengths and challenges are identified and policy recommendations are offered.
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This chapter examines the strategic framework and delivery arrangements for SME and entrepreneurship policies and programmes and identifies future challenges. It reviews the strategic statements on which policy formulation is based. The structures and organisations involved in its delivery are also assessed, including the SME Fund, which is one of the major sources of programme funding in Mexico, and its approach to policy delivery through intermediary organisations together with the major delivery structures such as the Mexico Emprende Centres and the National System of Business Incubators. The programme portfolio is also examined in terms of the mix of expenditures, matched funding, numbers of businesses served and estimated job impacts across different stages of the enterprise life cycle and types of programme interventions.
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This chapter reviews the SME and entrepreneurship support programmes operated by federal government. It examines the key programmes across the five types of support of finance, training and consultancy, business management, marketing, and innovation and technology, and how they address the needs of the five enterprise segments, namely nascent entrepreneurs, micro-enterprises, SMEs, gazelle enterprises and tractor enterprises. It also examines cross-cutting programmes for promoting entrepreneurial culture, government procurement from SMEs and women’s entrepreneurship.
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This chapter examines how SME and entrepreneurship policies and programmes are adapted to differing needs across the states and regions of Mexico and how coherence is achieved between federal and state policies and programmes. Policy recommendations are offered on strengthening this local dimension to policy.
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This chapter examines the framework for the evaluation of public SME and entrepreneurship programmes in Mexico. It sets out the case for evaluation and compares arrangements in Mexico with international good practice. Recommendations are offered on how evaluations might be undertaken for specific SME and entrepreneurship programmes in Mexico. Recommendations are also offered on how arrangements for evaluation could be strengthened at a systemic level, across the entire Mexican SME and entrepreneurship policy portfolio.
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This chapter draws the key conclusions and policy messages from the OECD review of SME and entrepreneurship issues and policies in Mexico. It argues that the significant policy improvements that have been achieved during the last 12 years should be maintained and that further efforts should prioritise strengthening micro-enterprises and reducing informality, supporting innovative SMEs and start-ups, simplifying the operation of the SME Fund, and strengthening the framework for evaluation of SME and entrepreneurship policies and programmes.
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