Small and medium sized companies represent more than 95% of existing businesses in the world and have some competitive advantages with regard to the bigger companies, such as their ease to adapt to the changes in the economy and the market’s demand. In addition, they are a fundamental part of the business creation and economic growth.
In Baja California there are a total of 8,700 SMEs, of which 1,000 are related to manufacturing. According to INEGI, Tijuana has 52.49% of the manufacturing SMEs with a total of 527. Mexicali (226) and Ensenada (149) follow, the rest of the state barely has 10%. By manufacturing subsectors, food products, beverages, and tobacco (180), machinery and equipment (174), and basic metallic industry and metallic products (136) stand out. This trend presents itself in the municipalities of Tijuana, Mexicali, and Tecate; in Ensenada, the textile industry dominates followed by the food industry.
According to INEGI data, in Baja California, the industrial sector represented 35.18% of the state GDP in 2013, with a total of $134,931,000 pesos (about $10.4 million USD), of which $73,726,000 (about $5.7 million USD) correspond to manufacturing, 54.6% of the industrial GDP. Within this industry, the subsector that brings in the most is the machinery and equipment one with 41%, followed by the food industry, beverage and tobacco and other industries. These data show the specialization of the state by having strong industries such as the aerospace, medical products, and electronics, mainly, where the state stands out internationally.
Analyzing the impact of SMEs in Baja California, one must talk about the impacts of SMEs in California, where they are find themselves at the front lines of growth.
The first edition of Small Business Index, which surges from a union of the United States chambers of commerce with MetLife, in order to offer the points of view and worries of business leaders, published that small business owners in the U.S. are very optimistic regarding the prospects of their companies but at the same time are skeptical with regard to the country’s economic stability.
The index surveyed 1,000 small business owners around the country and found that approximately 6 out of 10 feel positively regarding the market conditions for their companies. In addition, there are more owners who plan to increase the investment in their companies than those planning to retire from them.
The survey revealed that 60% of business owners hope.... Continue reading article here