MSMEs, the most lagging behind in reactivation of retail sales

While wholesale businesses have already managed to overcome the deficit dragged by the crisis generated by Covid-19, by growing 6%, retail businesses maintain a lag of 1% compared to what they entered in February of last year, commented Héctor Tejada, president of the Confederation of National Chambers of Commerce, Services and Tourism (Concanaco-Servytur).

He specified that wholesalers register an increase of 5.7% in their income from the supply of goods and services, compared to the pre-ndemic levels (February 2020), which indicates that the agenda will be focused on strengthening small businesses that reverse the trend.

“To strengthen small businesses in Mexico and precisely promote its continuity and life expectancy, Concanaco undertakes positive actions such as promoting the digital transformation of business chambers and their affiliates, accompanied by a fair and lean tax system that combats informality, distribute the payment of taxes in a proportional, progressive and systematic way and is also simple and accessible for micro, small and medium enterprises; technological training for entrepreneurs; business incubation and development ”, highlighted the merchant leader.

He recalled that during the pandemic, 1 million businesses were lost, especially small ones that did not withstand the economic crisis without government support, unlike other nations that did support their productive sector.

In Mexico 94.9% of the establishments are micro; 4.9% are small and medium, and only 0.2% are large, according to the definitive results of the Economic Censuses conducted by Inegi. 37.2% of employed personnel also work in micro-businesses and 30.7% in SMEs.

Small businesses also face challenges. Of the 4.9 million micro, small and medium establishments reported then by the 2019 Economic Censuses, Inegi estimated that in 2020, after the Covid-19 pandemic, around 3.9 million business units survived.

“The challenge now is to add more establishments that are part of the trade to formality and digital platforms through which you can have access to diverse consumer markets,” explained Héctor Tejada Shaar.

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