On human resources, the culture here is a job culture, you finish your career, you get into a company, work 30-35 years and retire, that's what the community expects of you. Starting a company is awkward, working in something without payment or having immediate profits is a waste of time or foolish. But that is changing with the crisis, everything goes now.
Getting people can be a bit difficult, most candidates I have interviewed had little experience (if at all), with free software technologies we use and demonstrated little will to learn (education tends to be centered on specific technologies), most don't work well unsupervised, thus our remote working experiment failed, they don't use modern development tools such as version control, bug tracking and project management software, etc. That is a generalization, of course there is brilliant people here too, but way more difficult to find, hopefully if a startup community concentrates in a place the skillful workforce will also concentrate there.
Government paperwork has always been abundant, complicated and time sink.
Taxes are not well leveled, either you are of low class (you have a small shop "changarro/tiendita") and pay a low tax, or you are middle class, a professional, you do consulting and give out receipts, your tax is relatively low and simple (you may require an accountant to make sure you don't fall into an obscure tax law and have problems), or finally you are the rich class, you are a corporation, you pay high federal taxes, state taxes, enterprise taxes (IETU), and retain value added tax (IVA, the equivalent of sale tax or VAT), only this bracket you will be able to give out invoices (invoices are centrally controlled by the government), which is a requirement when your clients are companies.
Most startups (incorporated) and companies will fall in the top bracket, even if you don't make millions, in other countries you are most likely to pay taxes based on your yearly income.
Financing is thought, the problem is government financing which is very prone to corruption, which means all those stimulus mostly go to friends, family and the corporate backers of those in the government (some politicians promise those stimulus to their backers beforehand in campaigns).
Finally, lets not get started with crime and violence, I live in a very peaceful part of the country but I have still received 2 or 3 calls arguing that they have a family member kidnapped, asking for money, a friend of mine even got a visit of an extortionist asking for "piso" money.
I can understand well why Julio is leaving, I was tempted too to apply to Startup Chile and start a new, but Mexico also has its key areas that are unexploited on technology and will be great business in the near future.