The crisis caused by the COVID- 19 pandemic has demonstrated the great challenges we face as societies, making more evident the difficulties faced by SMEs in Mexico.

The result of this phenomenon mainly affects entrepreneurs. Their reality has changed from one moment to another and they have begun a new normality, since the confinement has forced companies to follow new security protocols to counteract the pandemic, protocols that have generated the reduction of their income derived from the scarcity of work and sales in their commercial establishments; reason for which most of the companies face severe liquidity problems that prevent them from maintaining their economy stable.

Some of the affected companies have had to close their establishments permanently, declaring bankruptcy. Others have had to generate high unemployment rates because they do not have enough income and work to keep their employees working. These are the reasons why the main objective of this research focuses on showing the impact that COVID-19 has on the economy of small and medium-sized companies in Mexico, through the application of the case study method.

After the treatment of the information obtained, it is stated that most of the Mexican companies are going through different economic problems derived from the changes they have had to face due to the COVID-19 pandemic. These were some of the results reiterated when applying the techniques to write the information: Companies are going through critical situations that force them to make difficult decisions. For example, in the worst case scenario, closing their companies, increasing the unemployment rate by generating layoffs in their personnel and selling part of their assets to obtain extra income; houses, cars, land, among others. This is because the liquidity problems they are facing force them to look for solutions or strategies that allow them to meet their obligations and commitments.

A second conclusion indicates that although companies are structuring strategies that allow them to survive in the commercial sector to which they belong, it is not enough to maintain a stable production and sales rhythm compared to what they were used to. Globally, most of the companies have decreased their income and sales by approximately 60%. For example, if the company had a monthly income of one million pesos, now its income is around four hundred thousand pesos. Incomes that were not historically registered and limit the possibility of covering in a proportional way their common or constant expenses, reason for which their liquidity is affected.

SA. (2021). The impact of the COVID-19 pandemic on the economics of SMEs in Mexico. 14 May, from Emprendices Website: https://www.emprendices.co/el-impacto-de-la-pandemia-covid-19-en-la-economia-de-las-empresas-pymes-en-mexico/

The Impact of the COVID-19 Pandemic on the Economics of SMEs in Mexico