How Extortion Is Holding Back Mexico's Small Businesses
How Extortion Is Holding Back Mexico's Small Businesses
Mexican entrepreneurs grapple with obstacles to expansion. Here's one reason why many choose to stay small.
Mexican economist Luis de la Calle has a name for one of the challenges facing his country’s small businesses: extortionomics.
It’s not just a threat from organized crime or corrupt public officials: Red tape, regulations and a baffling fiscal system amount to a prohibitive tax on small and growing businesses, De la Calle told AQ.
“As soon as small businesses start to become successful, they are subjected to extortion and that creates a vicious cycle that obliges them to stay small,” De la Calle said.
It's a challenge President Andrés Manuel...
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