23 Jul Family Businesses: Pillars of the Mexican Economy with Great Challenges for the Future
Family businesses are an essential component of Mexico’s economic ecosystem. According to the Institute of Business Families for Mexico and Latin America (IFEM), this type of business represents 90% of economic units in the country and generates 75% of national employment. Most are micro, small, and medium-sized enterprises (MSMEs), and often arise from a family’s desire to get ahead, leverage shared talents, or keep traditions alive. These companies range from small businesses to online stores or specialized service businesses, consolidating themselves as a fundamental foundation of Mexican entrepreneurship. According to Luis Gómez, SME Director at Tiendanube Mexico, familiarity among members allows for more agile operations, with quick decisions and a direct focus on the customer.
One of the great benefits of family businesses is the trust among members, which facilitates fluid communication and decision-making based on shared goals. This generates a strong emotional commitment and greater resilience to environmental challenges. Furthermore, resources (time, capital, and networks) are integrated naturally, and founders typically have a high level of control over operations, which elevates the quality of service and customer service. However, these types of businesses also face significant challenges: family conflicts can interfere with daily operations, and roles are often assigned based on kinship rather than competency, which impedes the entry of external talent. Furthermore, the attachment to traditional values can make it difficult to adapt to change, and in many cases, there is no clear succession plan to ensure business continuity.
The sustainable growth of family businesses requires clear strategies and a long-term vision. Despite their importance, most fail to transcend generations: only 10% reach a fourth generation, while 60% disappear after the first or second. The high mortality rate of MSMEs—between 2019 and 2023, 1.7 million were born, but 1.4 million closed—evidences the need for sound strategic planning, with clear objectives, market analysis, and competitive assessment. The adoption of technological tools is also essential: from digital platforms to management software, companies must digitize to remain competitive. Failure to do so, as Gómez points out, can hinder their development, as many tools are costly if implemented in isolation.
An emblematic success story is Tintorería Real, a family business founded in 1962 and currently run by siblings Pamela and Eduardo Rovira. Despite the challenges inherent to family businesses—such as arguments between parents and children or the pressure to continue the legacy—they managed to professionalize their operation, divide responsibilities, and maintain constant communication. With eight branches, 150 employees, and a daily turnover of more than 1,500 garments in Mexico City, they operate at a pace that is both sustainable and cost-effective.
In conclusion, family businesses are a fundamental driver of the Mexican economy, but to survive and prosper, they require much more than blood ties and emotional commitment. They require business vision, openness to change, growth strategies, the use of technology, and professionalization. Only in this way can they ensure their survival and growth in an increasingly competitive and changing environment.
Source:
2025 – Family Businesses: Engine of the Economy, ElDiario de Coahuila. https://eldiariodecoahuila.com.mx/2025/06/29/family-businesses-engine-of-the-economy/