Credit ecosystem for MSMEs in Mexico. Relationships and limitations.

Abstract

This article analyzes the credit ecosystem for micro, small and medium-sized enterprises (MSMEs) in Mexico from a qualitative perspective. The objective of this study is to identify the actors involved in this ecosystem, characterize their relationships, understand the main limitations that exist between them, and explain how these dynamics determine the type of credit relationship that currently exists between financial institutions and MSMEs Through open-ended interviews with key actors in the financial, business, and support systems, and using thematic analysis, a narrative and graphical representation of the credit ecosystem is constructed. The findings show that the lack of financial literacy is the main problema and this leads to limitations such as informality and information asymmetry, which generate a high perception of risk in banks, justifying inaccesible colateral, high interest rates, and excessive banking bureaucracy.