Public policies and financing for Mexican SMEs in the face of the Covid19 pandemic

Background and objectives: This article is focused on understanding the impact
of public policies on Small and Medium Enterprises, especially in terms of financial
support in the face of the crisis caused by the Covid19 pandemic. To this end, the
hypothesis is presented that this support was not sufficient to restore the
performance of these companies.
Methods: Cross-sectional descriptive statistics methods are used based on
statistics, censuses, and official government surveys, as well as analysis of national
public policies in the region.
Findings: The results converge with the theoretical approach on the endogenous
limitations of Small and Medium Enterprises to access bank funding. Prior to the
pandemic, there was a low level of access to such funding, which over time
generated companies with deteriorated financial structures vulnerable to crises.
The policies have not generated a more fluid relationship between companies
and funding from formal financial institutions, generating a strong bond with
suppliers.
Conclusion: The policies that were implemented were palliative, in the context of
the crisis; however, the problem of the fragility of these companies persists, which
requires directing policies to strengthen them considering their fundamental
contribution to the country's business structure.