Today, microenterprises are the biggest source of employment opportunities in Mexico, responsible for 65% of all jobs available in the country. As a result of the 2008 economic downturn, microenterprises are flourishing as an increasing number of people are being laid off from large corporations and are setting up small businesses. Yet, they face many challenges: weak market linkages, low productivity linked to knowledge and information asymmetries and rising input costs.

Microenterprises in Mexico are isolated. Supplies are sourced at premium prices from intermediaries that provide little options for production, low quality inputs and no solution to their distribution challenges. On average, microenterprises in Mexico pay 60% more than large companies for the same supplies and services. Neither suppliers nor buyers want to deal directly with them. ¿How can we help microenterprises become more competitive?

Some statistics inspired us to work on microenterprise development:

• 90% of all the businesses in Mexico are microenterprises
• These microenterprises support more than 20 million people and they only contribute to 30% of the country´s GDP (most of the revenues are generated by local monopolies).
• 50% of microenterprises revenues are spent in raw materials and supplies
• Mexico is an exporter of people and cheap labor, but not of products.
  • More than 20 million Mexicans live in the United States.
  • More than 20 million Mexicans live in the United States.
  • The majority of migrants are leaving the country because there are not enough employment opportunities