**50% of New Businesses Shut Down After Two Years – Insight and Challenges**
Starting a new business comes with its set of challenges, and statistics show that 50% of these ventures don’t make it past their second year. This sobering statistic was highlighted by José Paz, the head of the Young Entrepreneurs Committee of the National Chamber of Commerce in Tijuana. One of the most prevalent errors contributing to these closures is the mismanagement of resources, which can lead business owners to make poor investment decisions.
Paz explained, “Many entrepreneurs mistakenly believe that their business’s financial health is a reflection of their personal finances. This misconception can be detrimental. Business funds are meant for reinvestment, paying utilities, staff salaries, and fulfilling tax obligations—not for personal use.”
Apart from financial mismanagement, new businesses often grapple with the complex bureaucracy involved in staying compliant with government regulations. Navigating these processes can be daunting for new entrepreneurs, further adding to their struggles.
To combat these challenges, various entrepreneurial workshops are being offered in collaboration with educational institutions such as UABC, Xochicalco, Humanitas, and CETYS. These workshops aim to provide students with the tools and knowledge needed to successfully start and manage new businesses.
**Secondary Article: The Struggle and Growth of Small Businesses in Tijuana**
In Tijuana, small businesses face diverse challenges. False municipal inspectors have targeted them, increasing operational difficulties. In addition to this, there has been a 30% rise in robberies affecting these enterprises in 2024, creating a more precarious environment for business owners.
Despite these setbacks, there’s optimism as local businesses anticipate a potential 25% increase in sales during the upcoming holiday season, indicating resilience and a need for strategic planning.
Moreover, the City is preparing for the winter holiday season by enhancing roads, anticipating increased travel activity. While new social housing projects assert that more than 3,000 homes have been granted deeds, indicating growing opportunities for community development.
As Tijuana braces for the first winter storm expected to hit from November 1st to 3rd, local businesses and residents alike prepare for the impact, showing the adaptability and perseverance of this vibrant border city.