Mexico: Interpreneur Report 2024
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- Mexico: Interpreneur Report 2024
Published on Thursday, June 13, 2024
It’s two years since we published our inaugural “Interpreneur” report investigating what drives entrepreneurs to take their businesses international and what it means to be an interpreneur, and in that time the landscape in which business operate has shifted significantly. Growth remains slow across much of the global economy, while spiralling inflation has increased the cost of doing business. Geopolitical tensions have disrupted supply chains, and the outcomes of the many elections planned this year are hotly anticipated.
At the same time, the operational priorities for business leaders are in a state of flux. The global taxation regime is seeing far-reaching changes, generative AI looks set to transform the way businesses operate, and access to capital remains a key consideration, buoyed by private equity investment as IPO activity slowed in many markets. Meanwhile, the nature of globalisation is altering as the flow of trade in services and data grows alongside that of goods, now that digitalisation has become a constant feature of business life.
In light of this, this second edition of the report focusses on the realities of going global. We investigate what it means to find success as an interpreneur, where the biggest barriers and bridges to expansion abroad lie, and what strategies and tools leaders of small and medium sized businesses (SMEs) are using to navigate the market forces and commercial pressures of international entrepreneurship today.
We surveyed 1,400 SME leaders to find out what’s driving interpreneurs to go global, what they have learnt from their experiences accessing new markets and audiences and how that insight can inform the roadmap for future. And we probe specific themes shaping the boardroom agenda, including ESG, AI, funding, tax and regulation to understand how these issues play into thinking around international expansion.
The survey was conducted with 100 business leaders in each of the following 14 countries: Brazil, China, Egypt, France, Germany, India, Japan, Mexico, Nigeria, South Africa, Spain, UAE, UK, and the US between 12 to the 19 February 2024. Survey respondents were C-suite executives, owners, chairs, partners, managing directors, directors or senior management across businesses earning up to £300 million in revenue. All percentages have been rounded up to the nearest whole number.
¿What is an Interpreneur?
An ‘interpreneur’ is a term we have created to describe a business leader who successfully expands their business’ presence into markets abroad.
If you are interested in doing business in Mexico, you can start here.
Mexico: Market Insights
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More than half (51%) of respondents said their business was primarily motivated to expand internationally by market growth opportunities: accessing new customer segments
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72% said increased sales and revenue was a key benefit of international expansion
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Adapting logistics and supply chain issues was the biggest challenge they faced – 53% said so
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86% expect an increase in businesses expanding overseas in the next 12 months
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Almost seven in ten (69%) have or would consider expanding into North America
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48% said favourable trade agreements (e.g. free trade zones, diplomatic partnerships, or preferential tariff treatment) are the biggest attraction in a target country
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42% see economic slowdown or recession as a disruptive or significant risk
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46% have used or would consider raising venture capital or private equity investment for international growth
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Nine in ten (90%) do or would consider ESG to some extent when evaluating potential new markets for expansion
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47% are extremely confident that they have a deep understanding of the international tax rules that govern multinational businesses and 51% are confident they understand of key principles and can navigate common scenarios
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96% feel prepared to harness the benefits of AI in global business operations within the next two years
Notwithstanding the challenging macroeconomic conditions, the drive for ambitious entrepreneurs to take their businesses international is extremely powerful. Going global is about reaching new customers, accessing new services, suppliers and technologies, and honing operations. By opening up new markets, creating efficiency gains and taking advantage of innovation, interpreneurial businesses can create competitive advantage.
Being bold and nimble, and having confidence and vision, are attributes that have served entrepreneurs well and they are even more vital when it comes to interpreneurship. But those qualities must be complemented by accurate local knowledge, clear insight into the cultural norms and legal, regulatory and tax regimes of the country in question, and visibility over the potential to build up robust customer and supplier relationships. Interpreneurs cannot afford simply to strike out alone into the unknown: they need this information to provide a map to show them the pathway to success.
At Kreston Global, our global network of business and tax advisers have a deep understanding of the landscape in more than 114 countries around the world. We work closely with SME leaders to plan and execute successful interpreneurship strategies, ensuring that businesses are primed for success as they go global, and supporting them at each step of the way as they develop and grow their operations abroad.
If you want to expand overseas, please contact us. We are here to help you.
