Minimizing financial losses: the biggest challenge facing medium-sized companies
- In a four-year period, 1.7 million businesses were created, while 1.4 million closed their doors.
- Corporate insurance is designed according to the needs of each company.
Mexico City, June 2025. Medium-sized businesses in Mexico are fundamental pillars of the national economy. Together with smaller economic units, they represent 98.7% of the private sector and generate more than 50% of the country's income, in addition to employing 78% of the formal workforce, according to the National Institute of Statistics and Geography (INEGI).
These businesses support families and entire communities and drive economic growth through their diversified products and services. However, despite their importance, they face numerous challenges that jeopardize their survival.
In Mexico, the pace of business creation and closure is frantic. A report from the National Institute of Statistics and Geography (INEGI) also indicates that between May 2019 and 2023, over a four-year period, 1.7 million businesses were created, while 1.4 million closed their doors. The high business mortality rate highlights the need for strategies that strengthen the stability and resilience of these businesses to reverse these discouraging figures.
“Having an insurance policy can be crucial to mitigating risks such as workplace accidents, property losses, or business interruptions, considering that a disruption or incident in operations can cost the entire project its life,” says Omar Mendoza, CEO of HDI Global in Mexico.
Properly insuring a business offers several significant advantages. In addition to protecting the company's assets, it also provides security for employees and allows for business continuity in the event of unforeseen events. Additionally, it can improve the company's perception among customers and suppliers, improving reputational issues that impact the closing of new business.
"Corporate insurance is designed according to each company's needs, as well as its level of operational complexity, organizational structure, and growth strategy. A medium-sized company can access a policy that covers the specific requirements of its size," the executive adds.
A financial example that illustrates the impact of lacking corporate protection is a medium-sized manufacturing company that suffers a fire at its facilities. Without insurance, the loss can be devastating, forcing the company to close. However, with an adequate policy, the business could recover more quickly, minimizing financial losses and ensuring the continuity of its operations.
It is crucial for mid-sized businesses across all industries to seek personalized, expert advice to assess their specific needs and select the most appropriate insurance coverage. Industry specialists can help identify potential risks and design effective mitigation strategies, ensuring these companies can face market challenges with greater confidence and resilience.
The closure of businesses in Mexico affects not only the entrepreneurs directly involved but also the country's economic and social fabric.