EconomyInsecurity costs companies more than 120 thousand million pesos...

Insecurity costs companies more than 120 thousand million pesos in 2021

Insecurity hit more than 2.1 million companies and businesses of all sizes in Mexico last year, and involved a cost of more than 120 thousand 241.2 million pesos, according to the Inegi.

According to the institute, there are more than 4.7 million economic units in the country, which means that four out of 10 suffered from some type of crime problem.

Insecurity gripped the establishments equally, with or without protection measures. The Inegi detailed that 1.7 million do not have any mechanism against organized or criminal gangs, although the ones who suffered the most were the other 3 million who do not have any type of armor.

The cost of the average crime in Mexico was 56,936 pesos; however, there were entities in which it was almost double.

The list of territories in the country in which entrepreneurs and business owners had to face this problem with more resources were Baja California, Mexico City and Guanajuato.

In the northern entity, the average cost of the 54,100 units that had some expenditure as a result of insecurity was 96,631. In the country’s capital, 235,119 establishments were affected with an average cost of 95,128 pesos, while the state of Bajío reported 112,002 companies with an economic impact of 90,088 pesos.

Other sites affected above the national average (59,936 pesos) were Chihuahua (67,324), Sonora (67,101), Quintana Roo (65,929) and Querétaro (64,593).

On the extreme side, the entities in which insecurity had the least economic impact on companies were Oaxaca (22,542), Tlaxcala (26,778), Zacatecas (28,308), Yucatán (31,125), Campeche (33,007), Guerrero (33,455) and Nayarit. (34,923).

How much do companies spend on protecting themselves?

According to the Inegi, just over 1.7 million units had to apply some protection measure to prevent insecurity and crime from affecting the operation, profitability and viability of their business.

On average, they allocated 39,949 pesos to defend themselves against crime. Although the figure also varied by state.

Baja California also led the list, with an average expenditure of 89,108 pesos, followed by Chihuahua, with 67,424 pesos. Sonora is added, with 63,143 pesos; Mexico City, with 56,829 pesos, and Nuevo León, with 56,219 pesos.

Who suffers more?

Crime has its main target in micro-enterprises, although for loot purposes, the large ones are the ones that pay them the most.

In Mexico, almost 1.1 million micro-businesses were victims of crime last year. In total they had a loss of more than 26.7 million pesos, which translated into an average loss of 25 thousand pesos.

The small businesses affected were 76,653, with an average loss of 121,970 pesos; the number of median units that suffered an experience with crime amounted to 18,014, with an average cost of 271,274, while the number of large units that reported an issue of insecurity was 10,202, with an average cost of 917,430.

The consequences of insecurity

Business owners not only recognized that the economic impact reduced the operation of their units, since many of them had to face other types of consequences of the problem.

The most recurrent was that they reduced the hours of production or commercialization of their goods or services, while another bulk responded that they stopped handling cash or its use was reduced to a minimum in the facilities.

The rest mentioned that they canceled growth plans for the establishment, such as investments; stopped trading or doing business with other companies; they canceled distribution routes or sales of their products, and/or the owner or owners stopped coming to their workplace.

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