Since most of you will be looking for a job or starting a business in your new country, we’re always on the lookout for articles that might help you understand the business environment abroad a bit better.
The Washington Post’s recent article “Mexican Leader Pushes for Easier Credit for Small Businesses” caught my eye because I lived in that country for seven years and am well aware of how difficult it has been for Mexicans or expats to get small business loans. Most Americans starting a business, of which there are many, had to self-capitalize their businesses.
But that may soon be changing. Mexico’s new president Peña Nieto has announced plans to improve access to credit for small businesses and bring down the usurious lending rates that can be traced back to the aftermath of Mexico’s disastrous economic crisis in 1995. Credit virtually disappeared and what was left was sky high. Mexico small business loans today are a part of Mexico’s 16 percent of GDP versus a Latin American average of around 50 percent.
The president’s goal is to loosen credit to help build a stronger middle class in Mexico, but access to capital for expats starting businesses should be greatly improved. He will begin by working with lenders to loosen credit through incentives and legal guarantees.
Starting a business is one of the best and most satisfying ways to earn your living abroad. We feature two intrepid American entrepreneurs in Puerto Vallarta, Mexico in our article “Start a Business in Your New Country” to give you a glimpse of how to go about starting a business abroad.
If you’re planning on starting a business or have started one, let me know. We would love to feature you in an article.