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Latino Daily News

Thursday July 28, 2011

16 Mexican State Governments Launch Initiative to Capitalize on Remittances

For the first time in its history Mexico with 16 state governments is launching an initiative that has the potential to be a game changer for Mexicans on both sides of the border. 

Looking to capitalize remittances, Mexico’s second highest source of income, the initiative aims to ignite the entrepreneurial spark in Mexicans living abroad and in their country of origin.  Expo Mexico Emprende, a three-day event to be held in Los Angeles on August 19-21, 2011, will bring together in one place and at one time a plethora of government programs designed to help Mexicans start and grow businesses.  The objective is to create jobs, combat poverty and improve the quality of life for families in the U.S. and Mexico.

Envisioned as an interactive conference open to everyone, the Mexican government is bringing to the people all that today’s Mexico has to offer.  Potential entrepreneurs will discover that present day Mexico has in place countless programs ready to assist and partner with them to create and grow businesses. 

Organized by Mexico’s Secretary of Economy through the Sub-Secretary for the Development of the Small and Medium Enterprises, the Expo will also be the platform for launching a new Migrant Fund “Fondo del Migrante” starting with a budget of $ 500 million pesos ($42,650,000 U.S. approximately), to help in the creation of micro, small and medium sized businesses.

According to the U.S. Census Office, of the 50.5 million Latinos living in the U.S., 59 percent are of Mexican origin. This group not only contributes with their work to the development of the American economy but also contributes through their remittances to the Mexican economy. These remittances are the second highest source of income for Mexico. From January through April of this year $US 6.97 billion were received, according to the Bank of Mexico. The challenge is that 60 percent goes to consumption, 15 percent goes to savings and only 3 percent goes to creating small business that are the main creators of jobs.

The Secretary of Economy reports there are more than four million micro, small and medium businesses in Mexico that represent 99.8 percent of all businesses that generate 78.5 percent of the jobs and bring in 52 percent of the gross national product.

The event is open to anyone interested in investing in Mexico. Hours are from 10 a.m. to 6 p.m. at the Los Angeles Convention Center, 1201 South Figueroa Street, Los Angeles, CA, 90015.