Pros and Cons of Doing Business in Mexico

Recently, American businesses in the Mexico have become a major theme of political rhetoric. However, Americans often overlook the gigantic business opportunities that Mexico represents. It possesses a thriving evolutionary economy that provides more safety and stability than other nations with a similar status. This makes evaluating the pros and cons of doing business in Mexico important for an organization. We’ve compiled a list of pros and cons for you to consider before starting a business in Mexico.


  • Emerging economy: Doing business in Mexico means working with a developing market providing large number of opportunities. You can easily corner the market by providing specific services or goods because what you provide is not immediately available. You can become an industry expert and establish your brand without facing any competition.
  • Stable economy: You must be aware about the financial crisis of 2008. Almost more than half of the world went into recession. However, Mexico and Australia were the only two countries unaffected by the change. The stability of the country resides in the banking sector which has a diversified portfolio. And this makes Mexico an excellent place to invest or expand your business.
  • Skilled workforce: In Mexico, the labor force is highly skilled in several industries and they are available in large numbers in numerous STEM fields. Companies don’t have to look after the legal status of the employees before hiring one as in the case of the US.
  • Reduced costs: If you ask the immediate advantage of manufacturing in Mexico, it is reduced costs. As compared to any other country, labor costs are significantly cheaper here. Industries that heavily rely on human labor can hire employees from Mexico at much cheaper price.


  • Corruption: Translation costs and corruption tops the list of disadvantages of manufacturing in Mexico. Foreign businesses are subjected to routine targets of corruption from civil servants, organized crime, police, or other sectors. What you save on permit will be spent on bribes.
  • Registering property is challenging: Before starting a business, registering real estate transactions is necessary. At the least, you need to be prepared for this before two months. Though the average amount of time for registering a property is 26 days, here it takes more than 70 days.
  • Lack of resources for small businesses: In Mexico, the lack of international SMEs and SMBs can be quite problematic. When trying to establish a business in the US or Canada, Mexican women face this same problem. Difficulties double up when moving abroad because of the expenses. Lack of resources when combined with difference in language and culture creates a high level of risk. As small as, the fear of unknown can hold some companies back from establishing their businesses.
  • Political uncertainty: In terms of tariffs and taxes, businesses in Mexico face uncertainties. The legal repercussions associated with establishing business in Mexico are tough to anticipate. A situation of high-risk is prevailing and investors need to contemplate both the pros and cons of doing business in Mexico.

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