exico needs more profitable and competitive companies; therefore, we need to end with the short term and survival mentality. It is fundamental for the authorities to provide resources for projects that have a serious vision and that seem to have a life of at least 5 years.

    It is possible that we reach the end of the year with more than 5 million MSME´s. From this universe, those with up to two employees generate 71% of the employment of the country. Notwithstanding, the high mortality rate of these businesses makes us think about their real perspective in the national economy. What is the main obstacle that these companies face to endure in the market? How and how much can they contribute to the development and strength of the internal market? How much is the investment needed in businesses with low possibilities of success to society knowing that only 25% of the recently created companies sustain operations after the first two years of activity?

    The main challenge faced by MSME´s is financing and once they have reached a credit, their weaknesses are centered in structural aspects like the lack of long term vision, lack of vocation, training and market diversification among others. This is logical if we take into consideration that the most part of these companies have at least two employees which makes it difficult to specialize their functions and therefore the build up of intellectual capital.

    This has already been detected by the authorities and in consequence, the Government is making an effort to help MSME´s through different programs. In this sense, we have to evaluate the cots and benefits that these programs pose to society. It is fundamental that  funds for new businesses do not become lost costs for society.

    The government shall provide companies, associations and intermediary organisms a database including markets and planning issues so they can elaborate a plan of successful permanence rather than a linear business plan. It will be positive to establish a business orientation center where market strategic information is available as well as trends and scenarios for an accurate decision making.

    After this, it is convenient that authorities segment and prioritize the universe of MSME´s according to the plan and the medium and long term vision of each sector. Eventually, it will be necessary to train micro-companies in a focalized strategy to help them increase their business knowledge. These incentives reduce the risk that MSME´s represent to financial institutions.