Mexico has an attractive business environment, especially for foreign investors. Registering a startup in the country is also very easy since it typically takes nine days and six steps. Foreigners are encouraged to invest in the country through free trade and cooperation agreements, the most significant being USMCA.
Before starting a small business in Mexico, you should educate yourself on the country’s business environment, culture, and laws dealing with commerce and trade. Once that is done, you can consider these 10 profitable small business ideas in Mexico.
10 Profitable Small Business Ideas in Mexico
Healthcare easily tops the list of 10 profitable small business ideas in Mexico. The market for medicine and related equipment is among the largest in the Latin American region, ranking at number 2. Mexicans are usually divided into three when it comes to health services. The first group attends public hospitals, the second goes for private healthcare, and the last chooses alternative medical treatment. The public health sector in the country is highly inefficient, and the current government is not prioritizing systemic reforms in the said medical institutions. This means there is a huge gap for private healthcare companies and practitioners to fill.
E-commerce is probably the best business to start in Mexico. It presently represents a small percentage of the total sales made in the country. However, the nation has very high potential in this sector, which is why large corporations have been investing in the education of Mexicans on e-commerce. The advantage of Mexico is that there is little access to goods in areas away from large cities. Additionally, online and physical retail markets are projected to grow by about 25 percent this year, giving a market share of about $7.58 billion.
3. Consumer Products
The market for consumer goods complements that of e-commerce. As stated previously, Mexicans outside the major cities have little access to goods and services since the major stores and supermarkets haven’t opened branches in such areas. The country has a population of 127 million people, and the middle class makes up a good percentage of this number. That means you can get a slice of the retail market share by simply starting a physical store.
Agribusiness in Mexico is growing at a healthy pace. For a long time, it has been an important sector of the country’s economy. This country is currently a major importer of agricultural products and equipment, mainly from the USA. The agricultural sector in the country has, in the recent past, been influenced by macroeconomic factors, most significantly the US dollar. A stronger US dollar increases the value of their agricultural produce because the sector operates under a deficit. Crop growing is the main agricultural activity in the country, with the major products being sorghum, corn, wheat, and sugarcane.
5. Waste Disposal and Recycling
Mexico lacks a proper waste disposal system. Formal waste recycling systems are also missing. The waste disposal and recycling market in the country is estimated to be around $24 billion. At the moment, the waste and recycling sector generates about $3 billion, and only a small group of people have tapped into the market. You can enter this market by getting involved in the selling of such waste products to a recycling company. Alternatively, you can sell the products through a ‘chatarreto,’ who will, in turn, sell them to recycling companies.
6. Car Rentals
The car rental sector in Mexico is highly promising due to the country’s popularity among tourists. In 2015, approximately 6.8 million foreign visitors went into the country for vacations. This figure increased by close to 10 percent in 2016 and is bound to keep going up. Tourists don’t usually travel with their vehicles, which means they need to rent cars to move around the country. You should, therefore, consider car rentals as one of your 10 profitable small business ideas in Mexico.
7. Digital Marketing
Internet use in Mexico has been progressing much slower than in many parts of the world. Currently, however, the use of the web is increasing at a rapid pace, and the social nature of Mexicans is driving them into sites like Facebook and Twitter. The number of people who are on social media is growing at around 13.5 percent per year, which means more than half of all Mexicans communicate via the internet. The increased internet use warrants a place for digital marketing in the 10 profitable small business ideas in Mexico.
8. Heating and Cooling
The country’s HVAC industry has been growing at a very rapid pace. There have also been significant investments in the power and hydrocarbons industry, and this is likely to increase the need for heat exchangers. As an HVAC practitioner with a startup Mexico firm, you can benefit from such a scenario by selling your skills to companies and residents of the country.
9. Marketing Consultancy
If you are a specialist in the marketing sector, you can take advantage of the robust business environment in the country by helping companies with their promotional strategies. Corporations are being set up in the country, many of them very big. Most of these, however, have no idea how to sell their products in the Mexican environment. Others are also blank when it comes to the analysis of the marketing strategies.
The use of English is growing in Mexico. The number of Mexicans taking English classes has doubled over the last decade and is still expected to rise. Currently, over 24 million people in Mexico are learning the language chiefly due to the national programs that have been campaigning for English proficiency. The language is also commonly used in business settings in the country. A lot of Mexicans end up leaving the country to study English abroad in countries like Canada and the USA. That means the market for ESL learners is vast in the nation and you can tap it by starting language classes as one of your 10 profitable small business ideas in Mexico.
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Doing business in Mexico is now easier than ever. These 10 profitable small business ideas in Mexico should help you decide on what activity you should engage in. Starting a business in Mexico as a non-Mexican citizen is not complicated, given the trade agreements signed by the two countries. You will also find labor much cheaper than in the USA.