Businesses in Cancún Close Due to High Costs

Every year, during the first two months, approximately 35% of businesses in Cancún, primarily micro and small businesses, close their doors. This is largely due to their inability to achieve financial stability amid the pressure of paying for permits and other operating expenses. According to Rafael Ortega Ramírez, spokesperson for the National Chamber of Commerce (Canaco) Cancún, this trend has become a recurring issue in the city's commercial sector. Over 50 businesses had already closed by early February, with the total number expected to rise significantly by the end of the month.

Ramírez explains that many entrepreneurs struggle to keep their businesses afloat due to high administrative costs, taxes, and lack of proper planning. This prevents their businesses from being sustainable in the long term. He emphasizes that while large foreign commercial chains do create jobs, most of their capital does not remain in Cancún. In contrast, small businesses not only generate employment but also stimulate the local economy. However, their survival is threatened by a lack of financial and administrative support.

Currently, Canaco Cancún has 3,556 affiliates, but the issue of business closures extends beyond its members, affecting the entire commercial sector of the city. Despite the frequent closures, Ramírez notes that an approximately equal number of businesses open each year. However, many of these new ventures lack a robust administrative structure and prior market research, leading them to shut down within two to five years of operation.

To address these challenges, Canaco Cancún invites small traders to join the chamber of commerce. This provides them access to training and tools that can enhance their business management and sustainability. The cycle of business openings and closures in Cancún underscores the need for more effective strategies to help small businesses consolidate and grow in a competitive market with high operating costs.