Having a good idea and a good product or service are key to opening a business, but the location is equally important, since the influx of customers, prices and the success of the business will depend on it.
But opening a business is different in each state, due to regional procedures, costs, infrastructure and the sector. According to the Ministry of Economy (SE), the opening procedures vary according to the state and range from 20 to 45 days, while the average costs are from 5,000 to 3,000 pesos.
“The success of a business goes beyond a good idea. Factors such as location, infrastructure and the fastest growing economic sectors are key pieces that every entrepreneur must analyze thoroughly before taking the leap,” said Alejandro Sena, general director of DineroMx, a financial information platform.
The SE also details that average salaries play an important role, because salary differences between regions can reach up to 50%, significantly impacting operating costs.
In which sectors do Mexicans start their own businesses?
Retail trade is the main sector in which Mexicans start their own businesses, as highlighted by the Association of Entrepreneurs of Mexico, followed by consulting, gastronomy and IT.
However, the Mexican Institute for Competitiveness (IMCO) highlights that the technology and software development, manufacturing, logistics, tourism and creative economy sectors stand out for their high growth potential in various regions of the country.
This growth is driven by factors such as digitalization and automation, proximity to international markets, tourist attraction and cultural heritage.
In 2025, entrepreneurs must also consider the sectors that offer a greater probability of success; in this way, it will be easier to identify opportunities with reduced operating costs,” says Alejandro Sena.
Why is location important?
Choosing the right city to start a business is an important component of a business strategy. For example, in cities like Monterrey, Guadalajara, and Querétaro, the average cost of leasing offices is significantly lower than in Mexico City, which can translate into significant savings.
In addition, DineroMx, based on an analysis of the 2024 Urban Competitiveness Index of the Mexican Institute for Competitiveness (IMCO), highlights that access to markets and resources also varies between regions. While large cities offer greater proximity to potential clients and business networks, they also entail higher costs of living and operating. In contrast, intermediate cities offer an attractive balance: modern infrastructure, local tax incentives, and a growing consumer base.
Another factor to consider is connectivity, since cities with better transportation networks and access to ports have a significant competitive advantage for ventures in the manufacturing and logistics sectors.
“In terms of geographic distribution, the central region of the country, which includes states such as Mexico City, State of Mexico, Guanajuato, Hidalgo, Morelos, Puebla and Querétaro, has 70% of the sales of the most important companies in the country. In parallel, Mexico City remains the main center of innovation and entrepreneurship, concentrating 45% of national entrepreneurs.”
Ranking of Mexican cities for entrepreneurship
If you are planning to open a business in 2025, knowing the best cities to do so is important, since the infrastructure and market demand of the entity are fundamental factors for the success of the business.
Therefore, DineroMx, based on the IMCO Urban Competitiveness Index 2024, provides a list of the 10 cities that stand out for offering favorable conditions for small and medium-sized enterprises (SMEs), combining affordable costs with favorable environments for business development.
- Mexico City
The Mexican capital is the country’s economic and political epicenter and concentrates a large percentage of the national Gross Domestic Product, which makes it a large and diversified market, despite having high rental costs. In addition, it offers access to a highly trained workforce and a business support network that includes incubators and accelerators.
- Monterrey
Recognized as the industrial capital of Mexico, Monterrey combines a consolidated business culture with an advanced infrastructure. Its efficiency in regulatory procedures and its access to financing, including venture capital funds, stand out. In addition, it has a robust ecosystem for technology startups.
- Guadalajara
Considered the “Mexican Silicon Valley,” Guadalajara leads the technology sector thanks to its ecosystem of innovation and collaboration between universities, companies and government. The city also offers competitive costs in services such as coworking and access to specialized talent in Information Technology.
- Hermosillo
The city has affordable commercial rental costs, a strategic location, and a booming industrial sector. Its excellent land and air connectivity allows it to reach new markets and expand horizons.
- Chihuahua
Its competitive energy and labor costs, coupled with a diversified economy and its position as an important industrial hub in the north, make it a strategic destination for ventures in technology, trade, and advanced manufacturing.
- Saltillo
Economic stability and proximity to the border with the United States have made this city a hotbed of opportunities for entrepreneurs. Its solid industrial base, especially in the automotive sector, offers a favorable environment for the development of new businesses and the expansion of existing ones.
- Querétaro
Its location in the Bajío positions Querétaro as an important point for business. Its road and air connectivity stands out, as well as its first-class infrastructure. In addition, it has a strong presence of aerospace, technological, and automotive industries, which generate opportunities in supply chains.
- La Paz
Despite its distance from large urban centers, La Paz offers low operating costs for businesses related to tourism and services; its growing popularity as a tourist destination has driven the development of businesses in lodging, gastronomy and recreational activities.
- Mérida
It has gained recognition for being a safe city with a reasonable cost of living and adequate infrastructure for SMEs. In addition, the state has economic dynamism and quality of life, which makes Mérida an ideal place for entrepreneurs.
- San Luis Potosí
Thanks to its location in the center of the country, this city has become a very important logistics hub. In addition, it has modern industrial parks and moderate operating costs, which facilitates the establishment of small and medium-sized companies.
What makes a city economically suitable for entrepreneurs?
An economically suitable city for entrepreneurs contemplates different operating costs, infrastructure, procedures, tax support, among others. These are some points that you should consider in the state before opening a business.
» Ease of doing business: Simplified regulatory procedures for opening companies, which reduces start-up times and costs.
» Tax incentives: There are cities that offer tax exemptions and reductions in local taxes for new businesses.
» Access to financing: Although most venture capital funds are concentrated in the most developed cities, programs such as those of Nacional Financiera (NAFIN) and Fondo para el Desarrollo Social (FONDESO) have begun to expand to less-served regions, facilitating credits for entrepreneurs.
» Affordable real estate costs: Regions with competitive prices for renting offices and industrial land make it easier to reduce expenses.
» Efficient infrastructure: The availability of services such as reliable electricity, modern road networks and functional airports ensures smooth operations and long-term competitiveness.
» Technological infrastructure: The availability of high-speed internet and coworking centers are important aspects for digital businesses.
» Quality of life and labor costs: Cities with a lower cost of living allow entrepreneurs to maintain competitive labor costs without sacrificing the quality of hired talent.
» Availability of human capital: The presence of universities and technical training centers guarantees a constant flow of qualified professionals.
Source: eleconomista
