CAINTRA industrialists met virtually in the Webinar: Impact of the COVID19 crisis on SMEs in Mexico and key actions to boost the sector. The objective was to learn about the the conclusions of the project conducted by Bain & Company, focused on assessing the impact that the crisis has had on SMEs in Mexico. impact that the crisis has had on SMEs in Mexico, as well as to define key lines of action so that this sector can recover more quickly. sector can recover more quickly. Among the participants were: Francisco Barnés, Partner; Luis Lapiedra, Partner; and Javier Hinojosa, Senior Manager; all of them members of Bain & Company. of Bain & Company.

The 3 speakers agreed that the current crisis, in the short term, will not be able to recover the pre-pandemic pace of the economy. the pace of the economy as it was before the pandemic, which would naturally force micro, small and medium-sized companies to take measures to micro, small and medium-sized companies to take measures to significantly reduce the impact on their finances. impact on their finances. Some of the options most commonly used at the moment have been the reduction of expenses and labor force; the and labor force, taking on debt and using equity capital to obtain greater liquidity. liquidity. With respect to the international context, they mentioned that there are different levels of financial support to SMEs by COVID-19 in several countries, including: loan programs to maintain employment; loan programs to maintain programs to maintain employment; guarantee programs; capital injections to state banks in guarantees; grants; as well as guarantees; grants; as well as lines of guarantees for SMEs.

The pandemic has undoubtedly created a number of difficult challenges for all economic sectors, but in retrospect, the panelists shared some of the lessons learned from the pandemic. economic sectors, but in retrospect, the panelists shared some of the lessons learned during this period. First, the importance of leveraging existing credit programs. Second, ensuring that these programs have simple, automated application processes with clear rules and regulations. automated and with clear rules; and third, to establish the right channels that allow them to reach the target audience. third, to establish the right channels that allow them to reach their target audience.

Finally, they shared the key needs identified in the SME sector, including the following are: The importance of accessing new customers or markets in order to increase demand; the the need to obtain financing for reactivation; the need to increase the flow of working capital through factoring; and the generation of continuous training for SMEs. the need to increase the flow of working capital through factoring; the generation of continuous commercial training, and reactivation training, as well as the existence of a regulatory environment that allows for a continuous and orderly reactivation. and orderly reactivation.

They agreed that SMEs, today more than ever, must focus their efforts on generating a greater demand for customers that will allow them to cover their expenses, while at the same time demand from customers to cover expenses, while at the same time using financing tools to continue growing. financing tools to continue growing. They stressed the importance of linking up with business chambers and clusters with business chambers and industry clusters to link companies with large corporations. large corporations.

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