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In a 2017 academic paper, Family Businesses in Mexico, published in the journal Revista Espacios, Dr Jorge Alejandro Silva Rodríguez de San Miguel noted that a wider tax base— meaning the bringing in to the formal economy of those many informal small businesses— would help the country’s medium and large family businesses.


AMÉRICA MÓVIL GRUPO BIMBO


MAJOR PLAYERS CEMEX


GRUPO BAL GRUPO MEXICO 53.3 14 13.7 10.6 9.8 SLIM TELECOMMUNICATIONS SERVITJE BAKERY PRODUCTS ZAMBRANO BUILDING MATERIALS “They look after not only the family


members, but the employees… They’re very much engrained in the culture.” And there are major family-controlled


companies in Mexico that have earned praise for their corporate governance, among them the global bakery producer Grupo Bimbo. Also, among later-generation family


members at Mexican family firms, the importance of best practice is widely acknowledged to be growing, helped by the fact that many have been educated overseas.


ISSUE 74 | 2018 BAILLÈRES MINING AND OTHER SECTORS INSURANCE, RETAILING,


MOTA-VELASCO MINING


MEXICAN FAMILY BUSINESSES BY SECTOR: (Based on those listed on the Mexican Stock Exchange)


Industrial Common consumer goods


Services and non-basic consumer goods Materials Telecommunications Health


14.5% 12.7% 5.5%


(Source: Tomás Ignacio Espinoza Aguiló and Nicolás Felipe Espinoza Aguiló, 2012: Family business performance: evidence from Mexico)


18.2% 25.5% 23.6%


However, this is unlikely to happen, as the cost of doing this would be high relative to the tax receipts the government would achieve, and officials are wary of cracking down on activity that provides vast numbers of jobs.


Silva Rodríguez de San Miguel is keen for more of the largest Mexican family firms to become listed, as this could promote best practice in management and encourage transparency.


Mexico is not an easy place in which to turn a profit, with Silva noting that the experience of multinationals indicates that higher levels of investment are required in the country than is the norm elsewhere.


So the challenges in Mexico facing large family businesses—and other organisations— remain high.


CAMPDENFB.COM


75


SECTOR


FAMILY


REVENUES 2017 (in $ billion)


COMPANY


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