This is the strength of entrepreneurship in Mexico

June
11, 2021

7 min read

Opinions expressed by Entrepreneur contributors are their own.

90% of Mexicans are interested in starting their own business, despite the pandemic, revealed the Amway Global Entrepreneurship Report (AGER 2020 ). This study takes the public pulse of the state and the intention of entrepreneurship at a global level and highlighted that Mexico exceeds by 33 points of difference the average interest percentage of the rest of the countries where the research was carried out (57%).

Supported by the consulting firms Ipsos and GFK, Amway conducted the tenth edition of this research that reached a sample of 23,808 respondents from 25 markets . To know in depth how the habits and intentions of entrepreneurs have changed in the last year and the effects that the COVID-19 pandemic had on the entrepreneurial spirit, we interviewed Martín Galeazzi, General Manager of Amway de México , who highlighted that a One of the biggest news and trends is that people find social networks a great vehicle to undertake.

“There is a very specific question: Would you use the social networks of family or friends for your business? 87% said yes, they feel comfortable and would. Social networks are a great vehicle not only to interact, contact, but specifically to sell in today’s digital world, “he says.

Mexico outperformed global results by a large percentage in the claims : social media is the best way to maximize the number of customers and sell products (64%) and social media channels are the best way to promote a business (61 %).

The most used social networks are Instagram, Facebook and WhatsApp, but the manager says that as they continue to evolve, entrepreneurs will find a way to continue boosting their business through them.

One of the strengths of the direct sales brand is that during its 60 years of existence globally and 30 in Mexico, it has placed special interest in the training of its entrepreneurs. “Education has been a pillar and we have always developed face-to-face and virtual trainings. Now, with the new normal, everything has become virtual and on very diverse topics, from how to use Zoom, that is, how to be able to connect with people in the new normal, to regulations, through social networks ”.

^{Martín Galeazzi, General Manager of Amway de México.}

Undertake out of conviction

The study evaluated interest in eight different business opportunities. Compared to the global market, Mexico showed a higher percentage of interested in sales through social networks (75%) , independent work (75%) and traditional work (69%).

He highlighted that 63% of men are interested in direct sales, compared to 58% of women, who see direct sales as an opportunity to start a business.

73% of those surveyed under the age of 35 are interested in self-employment ( freelance ) as a business opportunity and 69% are inclined to start a business related to e-commerce.

65% of those surveyed say that working on something they are really passionate about would be the main benefit of owning a business and there has been a growth in the momentum to undertake not just out of necessity, as previously noted by reports.

Galeazzi highlights that 83% of Mexicans consider themselves to have the necessary ability to undertake, a higher percentage than the rest of the markets. “I think that the Mexican and in particular the young person has a lot of resilience, a lot of desire and, in addition, that all this new normality has awakened in many people the intention to innovate, to try new things, to reduce the mental obstacles that many times were in last”.

In short, says the interviewee, “the new normal has been a turnaround and many people feel more comfortable and more secure in being able to undertake; even more so when new tools such as social networks appear at his hand ”.

But the entrepreneurial force of this company is not only young people (50% are under 35 years old). The manager says that it is the combination that generates his strength. “I think that this is a great value, because all the experience and wisdom of older people are complemented by the impetus, desire, energy and knowledge of new things that young people have. That’s a great thing about Amway. All of our trainings are aimed at different audiences. Each one takes aspects that interest him the most ”, he comments.

^{Depositphotos.com}

The numbers grow

Over the past year, the percentage of Amway entrepreneurs increased by approximately 5%. This number is related to the growth that the brand experienced in sales. “We have 60 years of history throughout the world. We have gone through many difficulties, never one as global as this one, but the company has always managed to transcend difficulties. It also helps a lot that more than 50% of the products are nutritional supplements, very much akin to the new normal, just like cleaning products. The number one brand in nutrition worldwide is Nutrilite. These aspects have helped a lot so that the company could continue and even get stronger. We have taken this pandemic as a great opportunity to evolve forward ”.

The future is promising for e-commerce, says the manager. In this sense, Amway has worked to help its entrepreneurs with the tools to manage their own online store and also to make delivery logistics more efficient. “Today we have an average delivery of no more than three days to reach any place in the Mexican Republic.”

Obstacles to undertake

Additionally, the study evaluated the main obstacles that Mexicans perceive when starting a business. 64% of those surveyed consider that obtaining the necessary capital to invest is one of the three most important challenges , followed by the recovery of the investment in a reasonable time (43%) and managing a work / life balance (32%) .

Where is entrepreneurial activity headed in Mexico? Martín Galeazzi believes that it will develop now more than ever. “ The numbers reflect it. This new normal has awakened by necessity and by taking advantage of opportunities. I see a very promising future in the case of Mexico and Latin America in relation to entrepreneurship and I believe that direct sales and particularly Amway, are a great vehicle to precisely channel all these very positive intentions of people to be able to have their own business ”.