You look forgovernment support to start a business? Then you have come to the right place. Although more and more financial entities are launching programs in favor of entrepreneurs and small and medium-sized companies; It never hurts to look at the options that the government offers to start our own company.
Next, I will explain six government supports that range from loans for entrepreneurs to advice and free business incubation programs, so that materializing your idea is something easy and simple. Accompany me! 👍
What government supports to start a business exist?
When we talk about support and incentives for entrepreneurs, it is necessary to note that there are different types of aid that a Mexican citizen can apply for, which are:
- Credits for entrepreneurs
- Bussines advice
- business incubators
Let me explain each of them.
Credits for entrepreneurs
The credits for entrepreneurs managed by the government are usually loans that are given to anyone who wants to start their business with a preferential interest rate, so that the user can pay the credit in a simple way, within the term agreed by the institution. financial.
What types of government loans for businesses are there?
These are some of the economic supports from the government to start a business that works under the entrepreneurial credit model.
- FUNDING
- NAFIN
- Fojal
- New Leon Impulse
Soon we will talk about them and what you need to know to obtain them.
Bussines advice
Also known as coaching business or business consulting, is all advice given by experts in business creation and economic activities in order to improve the performance of a company. Most of the advice offered by government agencies is free and on different topics, from the most basic such as advice on tax and accountability issues to innovation, digital marketing and e-commerce issues.
business incubators
A business incubator is a business or industrial consultancy and support center that supports entrepreneurs to shape their business idea from the seed, the prototype and the start of the production or service chain to the start and follow-up, years after starting your business.
Depending on the type of company you have and what it needs is how you can choose what type of government support to start your business you require. Although beware, one is not exclusive of the other. In many cases, business incubators inform you of the existing calls to apply for a loan or those financial companies that give loans for entrepreneurs, often including business advice.
According to , microenterprises in Mexico represent 95% of all companies, 40% of employment in the country and just over 15% of GDP, hence the need to support microentrepreneurs to consolidate their businesses. Now I explain six government supports to start your business that you can access.
Learn more…
Article
Bonus: Non-refundable federal support 💰
What are non-refundable federal aid?
Also known as dead-end support or dead-end resources, they are credit or loan programs for entrepreneurs that do not require repayment. That is to say, they are those financings where you obtain economic support and it is not necessary to return the amount granted to the institution that initially provided it.
What types of non-refundable support exist?
At the moment there is no non-refundable support granted in Mexico by government institutions. All credits and loans for government businesses are tools subject to investigation and statement of accounts, seeking to make the use of these resources transparent, ensuring the return on said investment and aiming at the permanence of current programs.
How to get a project to fund lost?
Although previously they were made known through calls, today obtaining non-refundable federal support is impossible, since there are no institutions that grant them or intermediary institutions that work with said organizations.
However, the following financial support from the government to start a business may seem attractive to you. Take a look at them!
It may interest you:
Article
PRONAFIM
What is the National Microentrepreneur Financing Program?
The National Microentrepreneur Financing Program, also known as PRONAFIM by its acronym, is a program launched by the Federal Government’s Ministry of Economy that supports microentrepreneurs through loans and financing at preferential rates that contribute to the creation and maintenance of economic units.
What type of credits does PRONAFIM grant?
There are two types of PRONAFIM credits:
- Individuals: it is given to a natural person when they already have a business.
- Groups: It is given to a group of people who together agree to pay the loan. (If one does not comply, the other members of the group must be responsible for payment).
PRONAFIM works with multiple microfinance institutions, so that you can work with the one that grants you the best conditions. It has national coverage, so there are financial entities in all the states of the republic and the
It may interest you…
Article
How to request a loan from PRONAFIM?
To request a loan from PRONAFIM, it is necessary to follow these steps:
- Enter the .
- Locate the microfinance closest to your town.
- Contact the institution, the mode of operation and the requirements.
- Compare your options and choose the alternative that suits you best.
Some tips that PRONAFIM gives you to choose your credit are:
- Take into account the CAT (Total Annual Cost) and compare it with that of different microfinance institutions.
- Also compare the different interest rates.
- Look at the available payment terms.
- Ask if the credit you are about to acquire already includes taxes or if it has insurance.
How much does PRONAFIM lend?
PRONAFIM loans range from $500 MXN to $80,000 MXN, in a term of three to four months and with weekly, fortnightly or monthly payments.
Remember that these loans are for companies dedicated to secondary activities (industry) or tertiary activities (services). You can find more information about PRONAFIM credits.
FUNDING
What is the FUND?
The Social Development Fund or also known as FONDESO by its acronym is a trust belonging to the Ministry of Economic Development whose objective is to provide microentrepreneurs with financial and non-financial support in order to create, improve and strengthen their business.
What type of credits does FONDESO grant?
At the moment you can find 11 types of financing to which you can apply:
- Microcredit financing for productive self-employment activities.
- Financing of microcredits in areas of very high marginalization.
- Microcredit financing for women entrepreneurs.
- Financing for micro, small and medium enterprises.
- Financing for women entrepreneurs.
- Financing for the entrepreneur.
- Financing for cooperative societies.
- Financing for cultural companies.
- Financing for the commercialization of rural products.
- Financing for merchants in tianguis and markets on wheels.
- Financing for tenants of public markets
Each of these services has different characteristics, requirements and users, from those for tenants of public markets, vendors in tianguis and markets on wheels, special cases, among others. and learn more about each of these programs. If you don’t know how to choose the best one for you, you can take the test and find out which one best suits your needs.
How to process a credit in the FONDESO?
Although each credit is different, the process is somewhat similar. Below I detail the steps you must follow.
- Generate your CDMX key. If you don’t have it yet, .
- Enter the registration platform and upload your data.
- Upload the requested documents to create your registration.
- Finish your registration and save the folio number that was generated. You will receive a confirmation email and through this channel you will receive notifications of your request.
Another registration method to obtain your credit is to send your documentation to the email fondesocovid19@cdmx.gob.mx or get in touch through the information shared on your Twitter account.
We are working to speed up access to the registration page for credit procedures.
At the moment you can start your pre-registration through the following emails. As soon as the page is ready, your registration will automatically go to the credit approval area.
— Fund for Social Development (@FondesoCDMX)
How long does it take to approve a FONDESO loan?
As we have seen, each case is different, however, taking the approval time of the 2022 emerging financing for micro-enterprises in Mexico City, in a period of 48 hours you can know the status of your application and if it was approved or if you need to send other documentation.
MSMEs EDOMEX
What is MiPymes EDOMEX?
It is one of the main supports of the government of the State of Mexico to start a business designed by the Instituto Mexiquense del Emprendedor where entrepreneurs can attend conferences, master classes, workshop cycles, in addition to doing networking with other entrepreneurs and develop networks of business contacts that help them increase the competitiveness of their companies.
How does the Instituto Mexiquense del Emprendedor support SMEs?
The IME has different support areas for Mexican entrepreneurs. Some of the most relevant are:
- Economic support (Pink Salary for entrepreneurship, EDOMEX microcredits, etc.)
- Events (Forum Entrepreneurial Connection, Innovation and Entrepreneurship)
- Courses (Strategic Marketing)
- Awards (Mexiquense Award for Business Excellence)
- Dynamics (Edomex Online Store)
- Fairs (Mexiquenses Suppliers Oxxo 2021)
Although on the official site they have details of all this, I recommend you, since they organize multiple events, videoconferences, workshops, in addition to reminding you of the open calls.
Business Incubators in the State of Mexico
Within the initiatives and support of the government of the State of Mexico and the IME is the rapprochement between this organization and the private and public Business Incubators. Through it is possible to contact these organizations to start and develop your business idea advised by professionals in the field.
It is even possible to apply for incubation scholarships, so that entrepreneurs who approach the program have extra support to materialize their objective.
Facebook Comments
Disqus