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News Article

Mexican Entrepreneurs Stressed During Economic Hardship

By José Escobedo | Tue, 04/07/2020 - 15:12

The business world is definitely experiencing stressful times as the rampant spread of COVID-19 has infected over 1.3 million people worldwide and has killed almost 80,000 people. In Mexico, 50 percent of entrepreneurs are suffering from high levels of stress due to current economic hardships.

Mexican micro-companies are responsible for generating 78 percent of employment, which makes up 52 percent of the country's GDP. Due to the COVID-19 crisis, Mexican entrepreneurs feel vulnerable and face great uncertainty, since most of them depend on daily sales to make ends meet.

UK-based UENI business technology services startup company conducted a study on mental health that focuses on how stress levels have affected Mexican entrepreneurs. The study surveyed more than 5,000 small businesses between February 21 and March 31, 2020 and showed that 63 percent of entrepreneurs or small business owners suffer from high to moderate stress levels.

According to the research, 48.71 percent of Mexican entrepreneurs are mainly concerned because they lack financial resources. Those fearing that their businesses will close represent 23.93 percent. Concerning violence and insecurity, 23.93 percent say that those are their greatest fears and the remainder 23.31 percent are mainly concerned about not having enough time to tend to their personal life.

The second part of the report will focus on finding out how measures adopted by the Mexican government against the COVID-19 pandemic are influencing entrepreneurs’ daily lives.

SME Credits

On Sunday, President Andrés Manuel López Obrador said his government plans to help small companies by granting loans to reactivate the economy. As part of the financial plan, the president said 1 million loans will be given to SMEs, both in the formal and informal sectors. SMEs represent 97.6 percent of all business activities in Mexico. Incentives will come from a MX$25 billion (US$1 billion) trust announced by the president.

"The economic recovery will soon restart, allocating public investment to new jobs, for family businesses and for people who make a living on a daily basis," said the president. López Obrador said he will present an investment program of MX$339 billion (US414.1 billion) from the private sector aimed at creating employment.

 

The data used in this article was sourced from:  
Entrepreneur
Photo by:   Unsplash
José Escobedo José Escobedo Senior Editorial Manager