The study indicates that entrepreneurs and micro, small and medium enterprises (MSMEs) in Mexico are in considerable need of financing. In contrast to micro enterprises, SMEs are usually formally registered and are easier to supervise and regulate.
Experts explain that while the crowdfunding ecosystem is under development, feasible opportunities will increasingly arise and incentives will improve so that they can join the formal economy. On the one hand, this fosters the regularization of companies and on the other hand, entrepreneurs will have better access to financing. The authors affirm that this will help improve the quality and competitiveness of the entire sector.
Researchers reveal that in Mexico there are both domestic initiatives and subsidiary initiatives with platforms based in other countries. Notable aspects that drive the generation of a positive environment for crowdfunding include: the proximity to U.S. capital markets, the country’s entrepreneurship culture and the technology infrastructure.
The report affirms that Mexico is advancing as crowdfunding leader in the region and is helping to pave the way for its extension to the rest of Latin America and the Caribbean. However, in order to increase its adoption and reliability experts recommend the continuous improvement of Internet access, availability of credit cards and other on-line payment mechanisms in addition to promoting the use of social networks.
Researchers have developed a series of recommendations to promote the adoption of crowdfunding in Mexico and in the rest of the region. Among others, in order for this initiative to become feasible they recommend expanding the network of professionals involved as well as improving legislation on the use of new online technologies and adequate intellectual property protection.
Researchers highlight the importance of having current laws and regulations in place and the support of institutions with efficient supervisory and compliance controls. These elements will improve the legal and regulatory framework required to support the crowdfunding ecosystem in Mexico and in the rest of the countries in the region.
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