Small and medium-sized enterprises (SMEs) need to know the market, as well as various operating rules in order to export their products; they also require support from state and federal governments and private enterprise to reach other countries, experts agreed.

At the conference SMEs and Export: Strategies to Internationalize Your Business , held at the Foreign Trade Congress. Globalization, Trade Agreements and Geopolitics: Impact on Business Growth , organized by  Concanaco Servytur , Daniella Martínez , vice president of Businesswomen at the business organization, said that 90% of companies in Mexico are SMEs, and that only 9% of exporting firms are small and medium-sized enterprises.

“We need to look at these companies in order to promote and democratize trade,” said Martínez, who said that it is necessary to see how SMEs can be supported so that they can export and be more productive, “because they do not know how to do it,” he stressed.

“They must have a logistics distribution plan and get into the topic of digitalization, automation and technology, as well as have an export project, among other factors,” he said.

Martínez said that states and authorities must support the implementation of these steps, in which private initiatives would also have to intervene.

Juliana Mutis , CEO and founder of Minkadev , said that the protectionist policy that Donald Trump , President of the United States, seeks to impose, is making Mexico turn towards market diversification, which involves other factors and regulations, such as environmental ones, as is the case in Europe, which has a higher standard in this matter.

“This makes the work of SMEs more complicated, which means they have to comply with new environmental regulations,” he said.

Among other challenges for exporting, the specialist considered that technology, to meet sustainability goals, is another point to consider, since it leads to a green transition, which can lead to new markets.

“The green transition involves the creation of new jobs so that companies are more competitive,” Mutis stressed.

Meanwhile, Tania Caldu , director of Amazon ‘s Global Sales Program for Latin America , said that the company has a Global Sales program that is focused on Latin America and seeks to remove that barrier for SMEs to expand their businesses to the United States.

In this regard, he stressed that the marketplace giant offers support to these types of companies to advise them on their exports and helps them create a logistics plan.

He also said that Mexico has great potential for online commerce to increase, since companies that are in this program have grown 20% due to cross-border trade.

According to Mordor Intelligence , the freight and logistics market in Mexico is growing rapidly and is estimated to reach $171.4 billion by 2029. This growth is driven by increased cross-border trade.

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The American UPS described the purchase of Estafeta as a great victory for the company , a transaction worth more than one billion dollars , which will allow them to consolidate themselves as leaders in North America and face relocation.

“By combining end-to-end services and connecting it to the global reach of our network, we will improve our logistics capabilities. It further supports customers who are manufacturing and distributing closer to the United States,” said Carol Tomé, president and CEO of the company in a call with analysts.

He explained that this purchase fits into its nearshoring strategy and will improve its capacity in cross-border solutions, which has experienced double-digit growth.

It is worth remembering that the day before, UPS announced that it has entered into an agreement to acquire the Mexican parcel services and logistics projects company , an action that is a key piece in its strategy to expand its presence in Mexico.

The acquisition of Estafeta by UPS is still undergoing evaluation by Mexican antitrust authorities.

Ricardo Kumar Dadoo, operating partner at Clarendon Capital LLC , a private equity fund in the transportation and logistics sector, and first general director of UPS de Mexico from 1992 to 1999, said that Estafeta is the jewel in the crown of logistics in the territory. Mexican,  “what UPS just took is great.” In addition, it will become the largest express parcel company in the country.

Likewise, he stated that it is positive news for the next federal administration in terms of foreign direct investment and echoes Mexico’s plans to continue strengthening the Treaty between Mexico, the United States and Canada (TMEC), cross-border flows and nearshoring .

“The integration of Estafeta clients will strengthen the possibilities of greater fluidity in the cross-border supply chain whether to the north or south, and on the other hand, the technology that UPS has will be able to reach through the Estafeta network. “, said.

He explained that the Mexican company’s business is 90% domestic between express parcels and logistics services such as storage and distribution, while for the American company 60% of its income is international and 40% or less is domestic.

Regarding any effect on rates, he commented that to the extent that the Mexican company incorporates technology, among other actions, the prices will be similar to those of the American company.

“However, we must not forget that Estafeta offers you several domestic services, it has delivery ranges the next day, two, three or five days, air, land, and UPS normally only has urgent services in the domestic sector, so it can expand its range. of urgent product options,” he indicated.

Likewise, he stated that the benefits of this purchase is the integration of small and medium-sized companies that the Mexican company has into the robust supply chain that the American company has, in this way they will be able to import and export in a more efficient way and “get on top.” to nearshoring.

“Old acquaintances”

He recalled that UPS arrived in Mexico in 1991 sharing the Toluca airport with  FedEx. UPS engaged in purchase discussions since 1990 which ended in 1992.

This period began with the help of Estafeta, who supported the firm in the delivery of international packages and envelopes.

“There was a close collaboration between both companies, which evolved to the point that UPS made its first offer for Estafeta in 1990, until the conversations were concluded in 1992 and in 1991 UPS began to have its physical presence in Mexico City, Monterrey Guadalajara, this triggers them to end their collaboration and begin to rely on companies such as  Redpack , Zoom and  Multipack in Mexico, this caused them to increase their physical presence in the country over the next 20 years to be able to have total national coverage,” he explained.

Therefore, he considered that this merger “was written that it was going to happen” , they have similar processes, as well as they have had executives who have worked in both companies, “there has been mutual cultural pollination and great respect despite the differences and that arose through the start of UPS, one of which was the opposing sides in the negotiation of the then Free Trade Agreement and caused a dispute one of the first of the Agreement, because UPS could not operate trucks in Mexico largely blocked by Estafeta”.

In this sense, he maintained that it has been a relationship that has overcome various obstacles with a common denominator, respect, very deep operational and managerial knowledge of the processes between both companies and closer than any other competitor.

He mentioned that both companies have a 10-year commercial alliance where Estafeta subcontracts UPS for international services, “so that’s when the winds begin to change.”

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Despite their crucial role in generating 72% of employment in the country and representing 52% of the national GDP , micro, small and medium-sized enterprises (MSMEs) face an average life expectancy of only eight years due to various factors of risk. This worrying situation was discussed in the panel “Opportunities and Challenges in SMEs in 2024” organized by  CIAL Dun & Bradstreet México.

John Soldevilla, general director of  Ecobi explained that according to data from the National Institute of Statistics and Geography (Inegi) , 99.7% of the business universe in Mexico is made up of MSMEs , while only 0.3% are large companies.

According to Soldevilla, research indicates that these small and medium-sized companies are responsible for 32% of total sales and that 46% of their debt is with suppliers, while 34% is with banks, which indicates low financial penetration.

Business credit destined for MSMEs has decreased by 20% , representing only 14.9% of the total, which is alarming for the sector, Soldevilla said.

“This is one of the risks, there is little access to credit, banks and financial institutions are unlikely to provide financing to MSMEs for various reasons,” indicated the general director of Ecobi.

In comparison, 93% of large companies make their purchases through electronic transfers, a practice adopted by only 17% of MSMEs, this is another risk to the lives of small and medium-sized businesses since there is little access at the current technological forefront.

Soldevilla also detailed that nearshoring was identified as a key opportunity for Mexican SMEs . He advocated the development of an industrial policy that benefits small and medium-sized companies, allowing them to take advantage of this phenomenon.

For his part, Rodrigo Ramírez, product marketing manager at CIAL, highlighted the need for MSMEs to seek credibility and visibility to be able to work with large companies. He also emphasized the importance of self-assessment and the use of prospecting and evaluation platforms to mitigate risks and incorporate sustainability criteria.

In addition, another of the topics to be discussed by the panelists was artificial intelligence (AI) and its impact on companies . Jeshua Vallarta, director of Product Development and Design, EXUS expressed his reservations about AI, pointing out that although it allows the creation of new concepts, also poses risks for employment.

“Artificial intelligence allows you to create new concepts and the question is, will it be prudent and leave everything in the hands of an algorithm,” questioned Vallarta.

For his part, Juan Carlos Gutiérrez, panelist and founder and director of Champions Soccer Academy , warned about the social and academic challenges faced by youth, highlighting the need for companies to adapt their structures so as not to be negatively affected by the reduction of groups. of work due to AI.

Sergio Hernández, president and CEO of CIAL, concluded the event by highlighting the purpose of giving visibility to the importance of MSMEs in the Mexican economy and society , and how his company seeks to support these companies in their challenges of growth, access to markets and credibility. through an ecosystem of transparency and business data.

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