Mexico City Introduces Program to Support 860 Cooperatives

The Mexico City government will provide financial and technical support to 860 local cooperatives under the “Social Economy Program 2025,” benefiting more than 5,000 cooperative members. The initiative, announced by the Ministry of Labor and Employment Promotion (STyFE), allocates MX$140 million (US$7.64 million) to strengthen and create cooperative enterprises in the capital.

The program will play a key role in consolidating collective projects that generate employment and reinforce community ties, says Inés González, Minister of Labor and Employment Promotion. “With this program, we promote the establishment and strengthening of cooperatives, providing technical assistance, training, and seed capital. Cooperatives not only improve the economy of their members but also strengthen social cohesion and promote sustainable development in Mexico City," she adds. 

The program will operate through four subprograms targeting different cooperative needs. The “Popular Impulse” subprogram aims to support 10 to 25 cooperative projects involving around 750 people. Each project may receive up to MX$800,000 (US$43,640) to improve and consolidate initiatives that promote sustainable cooperative development and the social solidarity sector.

The “Creation of Social Enterprises” subprogram will assist 550 new cooperatives, reaching about 2,750 participants, primarily unemployed or informally employed individuals. Each cooperative can access MX$80,000 (US$4,364) in seed capital to cover initial operational expenses, including machinery, tools, and raw materials.

Existing cooperatives will benefit from the “Strengthening of Social Enterprises” subprogram, which targets 265 formally established production cooperatives and 1,325 members. Each cooperative may receive up to MX$120,000 (US$6,545) to enhance and consolidate its productive projects.

Finally, the program will support 20 Care Cooperatives for the Establishment of Community Nurseries (CUCOS), comprising 200 participants. Each cooperative can receive up to MX$1.4 million (US$76,362) to equip and operationalize their projects.

The initiative reflects the government’s broader strategy to promote social economy models and collective entrepreneurship in Mexico City. STyFE encouraged interested parties to participate, stating: “Let us work together for social welfare and make the labor utopia in Mexico City a reality, a place where everyone has the opportunity to prosper and contribute to the common good.”