Over a million businesses close in Mexico due to covid handling


Of the 4.9 million micro, small and medium establishments reported by the 2019 Economic Censuses, it is estimated that one million 10 thousand 857 businesses closed their doors definitively during 2020, representing 20.8%, and 3.9 million survived, representing 79.2%, according to the second set of results of the Study on Business Demography, published by Inegi. 

On the other hand, the study shows that 17 months after the end of the census survey, 619 thousand 443 establishments were born, representing 12.8% of the country’s business population. 

The second set of results from the Business Demography Study shows that establishments created during 2020 have an average of two employed persons, while establishments that closed their doors that same year had an average of three employed persons in 2018. 

La pandemia Covid-19 dejó un saldo mas de un million de negocios cerrados

Of the 20.8% of establishments that died, 5.6% were formal in 2018. Of the surviving establishments, 25.9% are formal.

By activity sector, it is reported that of the total of informal establishments that closed their doors permanently, 10% carried out non-financial private service activities and 9.5% were dedicated to commerce.  

By federal entity. The highest proportion of deaths from formal establishments occurred in Quintana Roo and Campeche with 28.9% and 24.9% , respectively. The entities with the most deaths from informal establishments were Baja California Sur (34%) and Quintana Roo (33.6%). 

The study found that the greatest decrease in personnel occurred in April and May 2020, both in the formal and informal spheres, with a decrease of 23 and 27 employed persons, respectively. 

46.2% of the establishments that survived in 2020 have occupied personnel with primary and secondary studies, while 24.7% of the dead establishments had personnel with higher and postgraduate studies, as reported in 2018. 

It is also observed that 10.6% of the surviving establishments reported access to financing in 2018; while among dead establishments only 10% reported financing in that same year.

Source: eluniversal.com.mx

Mexico Daily Post