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The pandemic closes 7 companies every hour, according to Endeavor

October 29, 2020

The NGO conducted a study of some perspectives that can help entrepreneurs adapt in times of crisis. Here are some of the results.

4 min read

The opinions of the employees of You are personal.

The pandemic closes 7 companies every hour, according to Endeavor
The pandemic closes 7 companies every hour, according to Endeavor


  • Every hour 7 companies close permanently, 13,700 Mexicans lose their jobs and 1,366 people find themselves in poverty.
  • Retail sales in e-commerce are expected to grow 20.9% through the end of the year.
  • One of the most impressive changes in the digitization industry is the food industry.

Strive for Mexico published the results of his study entitled “Rehabilitation of the corporate ecosystem after COVID-19This shows that every hour 7 companies close permanently, 13,700 Mexicans lose their jobs and 1,366 people fall into poverty.

The organization notes that these figures only apply to the stable employment sector. However, more than half of the labor force (51.8%, plus 4.1% since April) is in the informal sector, for which data are not available.

According to the study, the sectors hardest hit by the pandemic are: airlines, department stores, logistics, industrial, pharmaceutical and hygiene products, and energy. According to Mexican Social Security Institute (IMSS)Only from March to May of this year were at least a million jobs lost.

Steps Businesses Took to Survive

In times of a pandemic where social distancing pays off, various companies have had to launch or improve their online sales channels and find other sources of income to keep their projects afloat.

In Mexico, e-commerce retail sales are expected to grow 20.9% by the end of the year as small and medium-sized businesses accelerate their digitization efforts to adjust to the new normal.

Image: Bench Accounting via Unsplash

Also the Mexican Association of Online Sales (AMVO) It is estimated that 6 out of 10 SMEs are now selling their products online, up 94.6% from 2019.

The organization’s study gathered information from 60 entrepreneurs whose businesses represent total incomes of $ 400 million and directly employ more than 11,000 people. Within the axes of analysis, various measures that companies have taken to counter the new normal were identified and the following numbers were found:

  • 85% were looking for new sources of income.

  • 85% paused or canceled non-essential activities or projects.

  • 82% newly negotiated leases.

  • 82% renegotiated contracts with suppliers.

In addition, it was found that 78% of entrepreneurs surveyed stated that their teams are more productive at a distance when it comes to working from home, as it saves them the daily commute to their offices and offers them more performance and flexibility.

Buying groceries online: the new trend

One of the most impressive changes in the digitization sector is that of groceries, as supermarkets remain open, but consumers have chosen to shop online to maintain social distancing more securely by forcing and avoiding physical contact. In just two weeks, compared to the week of March 9-15 and the week of March 16-22, the number of visitors to online grocery stores in Mexico increased by around 15 percent.