The “NENIs” the emerging entrepreneur women in Mexico

The “NENIs”: the emerging entrepreneur women in Mexico

Creativity pays off, especially in times of need. And if you doubt it, just ask a woman –preferably, a Mexican “NENI”. But, what is a “NENI” and how did the word emerge?
The Covid-driven economic crisis that began in the first quarter of 2020 was an unprecedented global shock to all of us. As countries imposed strict social distancing measures to flatten the contagion curve of the pandemic, global production, consumption, and investment came to a virtual stop, first in China and then in the rest of the world. Firms that were able to operate remotely continued to function, although less than optimally, while those that depended on face-to-face interactions had no choice but to shut down.

Leading economic indicators available in most countries suggest that the worse of the crisis may be behind us and that the world economy is set to recover beginning in the fourth quarter of 2021. Unfortunately, Latin America’s economy was especially hard hit from the pandemic when compared to the world or to other emerging markets. Furthermore, the decline in activity was larger in the service industries than in primary and manufacturing sectors, causing unemployment to rise in most countries.

However, some people have seen not only crisis, but also opportunity in this scenario. In Mexico, the “NENIs” surely saw an opportunity amidst crisis and are taking advantage of it.

“NENI” is an acronym in Spanish for Nuevas Emprendedoras de Negocios por Internet (New Internet Business Entrepreneurs). The NENIs are basically working women who have defied the typical classist and gender-wise roles – so common in Latin American culture – and taken over the term that they carry with pride by showing themselves as empowered women in search of economic independence. They are micro-entrepreneurs who work with their own resources and most of them operate without physical offices or shops. Some of them manufacture their own product, such as soaps, scented candles, or costume jewelry, and create small brands; while others purchase products wholesale and sell them at retail prices via Internet. 

Many of the NENIs are housewives who carry out unpaid domestic activities besides their entrepreneurial efforts. The NENIs are becoming an important part of the economy in Mexico and are playing a key role in its recovery by motivating sales and domestic consumption. Some analysts estimate that about 13 million Mexican households receive income thanks to the NENIs, who as a group generate an average revenue of MXN$ 10 million a day.

One fundamental factor that has favored the emergence of the NENIs is e-commerce. The emergence of COVID-19 accelerated the adoption of online shopping in Mexico. According to the INEGI (see graphic below), e-commerce sales grew an average of 55% during 2020, and consumers made greater use of the internet to buy products and services – jumping from 40% in April to 48% in October.

Maybe the spirit of the NENIs can be summed up in these statements:

•        “I feel proud to be an indigenous woman from Chiapas, Mexico, and be able to create these crafts with my hands, and offer them to people who live very far from here… I am not going to give up because I want to succeed for myself and for my family. My biggest dream is for my business to grow and I will achieve it.”

•        “There is a phrase that says, ‘In times of crisis some people sit down and start crying, while others sell handkerchiefs’; I prefer to be one who sells handkerchiefs to those who sit down and cry.”