Business & Finance

Veracruz, Mexico--(HISPANIC PR WIRE - BUSINESS WIRE)--October 28, 2005--The need for a series of dramatic new programs to drive greater entrepreneurship and spur growth among Mexican companies is even more urgent today given the destruction that Hurricane Wilma caused in Mexico's South East, Mexican Business leader Ricardo B. Salinas said at the Business Summit in Veracruz earlier this week.

Mr. Salinas made his remarks the day after Hurricane Wilma destroyed a tip of Mexico's Yucatan Peninsula causing considerable human tragedy and billions of dollars in material damage.

"Our country and the whole region have suffered an enormous loss as a result of Hurricanes Stan and Wilma, and our hearts and prayers go out to all of those who were affected," Mr. Salinas said. "First and foremost we must offer immediate rewards to the business leaders and entrepreneurs who accept the challenge to help rebuild our communities and economies. And now, as we begin to rebuild, is the time that the business community in Mexico needs to show its strong leadership."

Participating in a panel addressing the topics of entrepreneurship and innovation, he said: "With a longer perspective, we need the economy to grow, and need a radically different fiscal policy that would encompass, among other things, eliminating income taxes on small businesses so that they can grow and prosper and then become tax-paying entities to the benefit of the country. It is hard enough to start or rebuild a business, but bearing a large and complex tax burden right after launching an enterprise will destroy most of them before they have a chance to succeed. In addition, placing huge tax burdens on payrolls will inhibit job creation and is exactly the wrong medicine for Mexico. It's vital for an economy to be aggressive in promoting entrepreneurship. In the business world we have the capacity to move quickly and take advantage of opportunities without bureaucracy - and using these skills will help our development move forward to meet the needs of everyone."

Just as important, Mr. Salinas said that the powerful examples set by a raft of successful micro-financing initiatives in Mexico have the potential to fundamentally change the way in which the rebuilding efforts in South Eastern Mexico and communities affected by natural disasters around the world are undertaken by the respective governments and the traditional non-governmental organizations (NGOs).

Mr. Salinas - who joined an array of international economic, political, and business leaders including former U.S. President George Bush at the Veracruz forum -participated on a panel discussion about "The Innovative Mexican Corporation."

Indeed, Grupo Salinas' long-term commitment to entrepreneurship is even more important now as it can serve as an example for the rebuilding effort. Luis Nino de Rivera, Vice Chairman of Banco Azteca, said: "In fact, our microloan program, which is a critical ingredient to lifting the financial barriers small entrepreneurs in Mexico face today, continues to grow. Each week we open 50,000 new savings accounts and grant 80,000 loans to the working-class population - a very important accomplishment when you consider that 70 percent of the population in Mexico is underbanked. Through the Azteca Entrepreneur Program (ASMAZ) small business owners can also obtain machinery, equipment, and other goods with accessible prices and payment terms via the Elektra stores, not to mention legal, consulting, and other services."

Mr. Salinas' presentations follow his work in Mexico and globally to promote private sector action to drive and encourage the development of strong and vibrant middle classes. Mr. Salinas will continue his worldwide focus on these critical issues through his participation in the World Economic Forum in Davos, Switzerland in January 2006.

Grupo Salinas Profile

Grupo Salinas is a group of dynamic, fast growing, and technologically advanced companies focused on creating shareholder value, building the Mexican middle class, and improving society through excellence. Created by Mexican entrepreneur Ricardo B. Salinas, Grupo Salinas operates as a management development and decision forum for the top leaders of member companies: TV Azteca, Azteca America, Grupo Elektra, Banco Azteca, Afore Azteca, Seguros Azteca, Unefon, Iusacell, Movil@ccess, Todito.com and Telecosmo. Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings. However, member companies share a common vision, values and strategies for achieving rapid growth, superior results and world-class performance.