The United Mexican States. Sun-drenched beaches, tequila, delicious food, ancient Mayan cities, but also increasing drug violence and poverty. A country of great contrasts. Around 112 million inhabitants. The twelfth-largest economy in the world rankings, yet there are doubts as to whether Mexico should be granted the status of a developing country. This is due to the strikingly unequal distribution of wealth. While 17% of Mexicans live below the poverty line, 20% of the inhabitants account for 55% of the income.
Agriculture accounts for 4% of the Gross National Product and creates employment for 18% of the Mexican population. Services constitute the largest sector, both in terms of share of GNP and employment.
Mexico is an export-oriented country. Petroleum, silver, corn, cars, airplanes, electronics, and telecommunications equipment are among the most important export products. Since 1994, exports have increased by 170% following accession to the North American Free Trade Organization. There are 32 free trade agreements with more than 40 countries – including the Netherlands.
Doing business in this land of extremes is not easy. Rising drug violence is a problem, underlying conflicts exist in certain regions, and there are various terror cells. These are matters that can impact the Mexican economy and your sense of security. Generally, however, you will not notice much of this as an entrepreneur. Just like in the Netherlands, there are places where it is simply not wise to flaunt your wealth.
You may encounter a greater risk of problems with your business due to Mexican bureaucracy. Delays and corruption at customs, as well as regarding taxes and permits, do occur. In recent years, a clear improvement has been noticeable regarding corruption among civil servants. The government is working hard on this. However, an acceleration of procedures is not on the cards for the time being.
If you want to do business here, take the Mexican culture into account. Put your directness aside; it is not appreciated. Everything is done via detours. A heightened sensitivity to authority and status means that business is preferably conducted with the director personally. Invest time to get to know your potential business partner well; the Mexicans do the same. Do not expect the deal to be closed after just one or two successful meetings. A few dinners later, perhaps. If you speak the language, you certainly have an edge.
A shift in mentality is clearly noticeable, especially in the major cities. The influence of the growing service sector, social media, and international contacts is causing the atmosphere to become more business-like. In our Western eyes, this represents increasing efficiency.
Over the past twenty years, there have been many changes within the Mexican economy. Exports have increased enormously, and about 80% of companies that were government-owned have been privatized. This presents opportunities for entrepreneurs from the Netherlands. But take the time to get to know the country, the culture, and the language. Time. It is your biggest investment if you want to do business in Mexico.
