Economic development in Mexico, and all countries, provides an important foundation for the future of society. It is important that countries constantly make efforts to grow their economies, making new advancements in both technology and industry. Local economic conditions in Mexico and cities in other countries directly affect the cost and quality of life for every household; healthy economies lead to healthy communities and, ultimately, healthy individuals.
Economic development in Mexico, and world-wide, is the process for creating wealth, by which communities and individuals prosper. It occurs in the private sector.
There are two parts to successful economic development: selling and product development.
The local economies in Mexico embody basic industries, supplier industries, and consumer industries. There are external forces that affect economic development in Mexico such as: setting, regional tendencies, global dynamics, technical alteration, and national policy.
There are internal forces that affect economic and industrial development such as: physical environment, human environment, and local policy. The state of the local economy impacts: jobs and incomes, population and work force, land and buildings, infrastructure demand, and services demand. Since there are many things that depend on a thriving economy, therefore organizations that support economic development exist to try to maintain stability.
An economic development agency in Mexico is an authorized entity directed by a board of directors and/or members, with the intention of leading economic development by promoting innovation and competitiveness, arranging regions for growth and success in the worldwide economy. It can also be a public entity that operates under the authority of the federal, state or local government.
Why do Economic Development Agencies in Mexico Exist?
Economic development agencies serve as a blanket organization that pulls together and coordinates a region, city’s or town’s assorted interests, organizations, and principals to ensure connected participation of the private sector in Mexican economic development. The agencies vary in size and focus, but the overall goal is to establish a foundation for sustainable job growth and the building of durable regional economies.
Traditionally, these corporations have focused on marketing an area to attract new manufacturers to Mexico. Many however, have gone beyond manufacturing conscription—some Mexican economic development agencies take an expansive analysis of the economy and take on responsibilities that relate to activities such as tourism, other economic development agencies focus their efforts entirely on manufacturing, commercial or residential development.
Many economic development agencies in Mexico have goals that pertain to attracting new basic employers (manufacturing, non-manufacturing) by:
o Attending trade shows
o Participating in promotional efforts
o Building infrastructure for new employers
• Develop the aptitude of existing businesses (preservation and growth) by:
o Supplementing the acquisition of job training funds
o Sponsoring conglomerate conferences
o Encouraging partnership
• Improve the ability to raise money by:
o Preserving retirement income in the community
o Increasing local purchases
o Providing more services locally
• Encourage the formation of new businesses by:
o The formation of investment principal
o Revolving loan funds
o Forming incubators
o Providing management assistance
• Increase aids received from extended government through:
o Endowment writing
o Sponsoring federal acquisition seminars
Mexican Economic Development Agency Services
Service offered by economic development agencies in Mexico differ depending on needs that vary from company to company. Assistance can be provided to individuals, companies, and investment establishments across the country. Most economic development agencies offer consulting to entrepreneurs and businesses looking for strategies that will accelerate the growth of their venture; assistance to commercial and industrial enterprises to discover and solve problems or concerns they may encounter; and help for existing companies to expand.
Manufacturers seeking to commence and continue operations in Mexico often look toward local and regional Mexican economic development groups and agencies to acquire information that is critical to embarking on and concluding their site selection efforts. Economic agencies in Mexico offer a wide range of assistance to such parties, these include.
Benefits of Economic Development Agencies in Mexico
The Mexican public sector benefits from growth and development through increased revenues from property and sales taxes, fees, user charges, utilities, and intergovernmental transfers. A successful economic development project can create tangible benefits for local or regional economies and real costs and revenues for local governments. Economic development agencies in Mexico can also reduce the risks and expenses for companies to expand and thrive. By aiding in the expansion and success of companies, the agencies help to increase job opportunities within the local areas, improving the community in which a given company moves to.
A partial listing of economic development agencies on the federal and local levels in Mexico include: