October 18, 2000

Tijuana has dramatic drop in business start-ups.

During January through October of 1999, Tijuana recorded 1,131 new business start-ups. During the same months of 2000, the registered start-ups were 222, a drop of nearly 80 per cent.

Varied reasons are given as potential reasons for the sharp drop, but there is no clear evidence any one of them is behind the sharp decline. The most prominent reasons mentioned are that entrepreneurs are being cautious. At the beginning of the year, because it was a presidential election year, and after the elections, because they are not sure what course the new president will take.

Another reason offered is the high crime rates in the city. Businesses have been the most popular sector for robbery with reports indicating that as no less than forty of every hundred-business establishments have been robbed during the last year.

Another reason offered is that unemployment is so low, it is difficult and expensive to find adequate workers.

And yet another reason in the forefront, is that it's a combination of all the above. The fact is no one is quite sure, but business leaders are disturbed by the situation.