Border entrepreneurs: SMEs, the binational economic force that can’t wait

Amid global trade tensions and the urgent need to strengthen regional value chains, small and medium-sized enterprises (SMEs) along the Mexico–United States border have emerged as key players in shared economic development. From Tijuana to Brownsville, including cities like Nogales, Ciudad Juárez, and McAllen, a growing number of binational programs are being launched to provide local SMEs with financing, training, and access to technology and broader markets.

In 2024, both governments and several local institutions ramped up efforts to support this sector. In Mexico, the “Impulso NAFIN Frontera Norte” program allocated over 2.5 billion pesos in preferential credit lines, benefiting more than 12,000 SMEs across the border states of Baja California, Sonora, Chihuahua, Coahuila, Nuevo León, and Tamaulipas. Meanwhile, in the United States, the Small Business Administration (SBA) strengthened ties with local economic development agencies in Texas, New Mexico, Arizona, and California to provide advisory services and microloans to over 18,000 Hispanic-owned companies, many of which operate across the border.

A joint 2024 study by the University of Texas at El Paso and El Colegio de la Frontera Norte found that SMEs make up 87% of the business ecosystem along the border but account for only 25% of binational trade volume. This imbalance highlights a major missed opportunity: many businesses lack access to flexible financing, training in international trade, and digital tools to compete in a global marketplace. Yet it also reveals enormous untapped potential—if structural barriers are removed, SMEs could significantly scale their contribution.

One of the most notable advancements over the past year has been the creation of binational innovation hubs for SMEs. The “Transborder Entrepreneurship Hub” launched in the San Diego–Tijuana region trained more than 600 entrepreneurs in its first year in areas like e-commerce, artificial intelligence, and export regulations. Universities such as ITESM and Arizona State University also partnered to offer certification programs in innovation and advanced manufacturing for entrepreneurs and SME managers.

However, the challenge remains significant. Many of these initiatives are still isolated and lack strong institutional coordination or a unified binational policy that positions SME support as a regional development strategy. In 2025, the top priority must be integrating these efforts into a shared agenda that recognizes SMEs’ strategic value in nearshoring, supply chain relocation, and strengthening local economies still affected by structural inequalities.

Moreover, financing programs must adopt more inclusive models, with a gender focus and targeted support for businesses led by migrant or Indigenous communities. According to INEGI and the U.S. Census Bureau, only 14% of export-oriented SMEs in the border region are led by women, exposing a gap that must be closed to ensure truly equitable growth.

Technological interoperability between the two countries must also be improved so SMEs can adopt compatible digital tools for e-invoicing, smart logistics, and cross-border tax compliance. Without this, the digital divide could become a new wall—just as limiting as the physical one—blocking regional growth.

In conclusion, 2025 will be a decisive year to elevate SME support from a sectoral initiative to a strategic priority for both Mexico and the United States. If a binational entrepreneurial ecosystem can be built—with clear rules, accessible financing, and top-tier tech training—the border will cease to be a line of separation and become a launchpad. SMEs are ready. The question is whether our governments are too.

Written by: Editorial

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