Small companies without access to financing

[sujonkumar6300]

Are forced to finance their clients for more than 60 days on average, and this without considering the previous sales, production and operation times. How many entrepreneurs can withstand this? How much can they grow and at what speed, with their own resources?
Finally, if entrepreneurs want to have access to capital, they face the fact that ideas or teams of people are not financed in Mexico, mainly because venture capitalists do not see mechanisms to recover their investment. Even if our companies are successful, there is no healthy market in Mexico for buying and selling innovative companies or their shares.
A further consequence of what has been mentioned is the impact of this Slovenia Mobile Database problem on social mobility. Innovation, which should foster social mobility, simply does not work if entrepreneurs need real estate and equity before innovating or starting a business.

However, based on my experience, the capitalist investor does not stop investing in Mexican innovation because there is no chance of success or because it is too risky, but rather because of the low return when selling their position since there are no exit mechanisms that generate liquidity in the market.

The bottom line is that the most viable form of innovation in Mexico is achieved through reinvesting the entrepreneur's profits. This mechanism has the serious disadvantage that the profitability of small and medium-sized companies tends to be insufficient to execute the entire cycle of design, development and commercialization of the innovation in a sufficiently fast and competitive manner to win and sustain local or international markets.