Less handouts for Mexican entrepreneurs

Mexican entrepreneurs are going to suffer a severe cut in 2017 and will receive 48% less handouts than they have obtained this year through the National Entrepreneurial Institute (INADEM). The budget for micro-, small- and medium-sized enterprises (MSMEs) will be 3.761 billion pesos, representing almost half the 2016 expenditure that was 7.261 billion pesos.

The Universal collects the complaints of the entrepreneurs who are asking the Mexican government to "safeguard, rectify and protect SMEs" and stress that as small businesses are becoming less successful, half go under after two years, the lack of support leaves them in a critical situation.

It's not all bad news for entrepreneurs: on the one hand, a reform has just been adopted for them to be able to set up a business in just 24 hours and, on the other hand, the English businessman Richard Branson will travel to Mexico in November to boost the country's talent.

The new law takes effect on September 15. It allows new small- and medium-sized enterprises to be registered as Simplified Joint Stock Companies (SAS) via the Internet. With the entry into force, per 1,000 enterprises formed, entrepreneurs will save at least 15 million pesos and 55 years of bureaucracy, according to the Mexican Association of Entrepreneurs. However, some critics highlight that by eliminating control by notaries companies may be constituted for money laundering or other illegal activities.

Entrepreneurs are also awaiting Richard Branson's arrival. His company Virgin Mobile has launched a call targeted at entrepreneurs under 30 years old to submit ideas and projects that use mobile devices. The winner will receive 200,000 pesos.