The challenge of business in Latin America

In recent years Latin America has been a hotbed of entrepreneurs who have created truly innovative companies in all business niches.

 

But recently it has stagnated and has new challenges that do not allow generating good jobs and increasing productivity. The region needs to establish an environment that allows entrepreneurs to emerge, compete and innovate.

 

2019 proved to be an important year for startups. However, 60% of Latin Americans work for companies with five or fewer employees.

 

Entrepreneurship creates jobs and promotes economic growth. But although start-ups are high in the region, it grows at a much slower rate.

Succesfull business in Latin America

Entrepreneurs’ Landscape when making business in Latin America

In the last ten years, Latin America has benefited significantly from favorable economic tailwinds. This enables the region to reduce extreme poverty, increase equality, and boost 50 million people into the middle class.

 

This has been thanks to the fact that prominent companies can train really successful entrepreneurs in different industries.

 

An example of successful enterprises is Juan José Gutiérrez Mayorga, an important businessman in Guatemala. Alongside with his family, manages the most important businesses in their country, creating thousands of jobs and benefiting many families.

 

What do business companies in Latin America have to offer?

Latin American companies develop new products less frequently than their counterparts in other developing regions. Product development rate is less than half that of Thailand or Macedonia.

 

Consequently, this lack of innovation hurts competitiveness and slows growth and bounces off the creation of quality jobs, a significant development challenge, especially in Central America.

 

4 factors to develop entrepreneurs

  1. Human capital: Science and technology graduates and engineers are very important in Latin America.
  2. Intellectual property: Intellectual property rights can be an important bureaucratic task for entrepreneurs in the region.
  3. Risk-taking: This is evident both in individual reluctance at the corporate level and in low levels of investment in research and development, especially from the private sector.
  4. Logistics: tThe modernization of ports, transport and customs can add a competitive advantage to the products of the region. Currently, poor public services, communication links, and transportation infrastructure add to obstacles to boosting production capacity in the region.

 

In Latin America there are many successful companies, but it also requires precise support so that entrepreneurs continue to encourage themselves to innovate and embark on an entrepreneurial path.

5 Successful Companies in Latin America

Successful companies in Latin America

The Latin American economic growth has been a bit slower. However, in the last two decades, the region has gained considerable strength and regained ground. Proof of this is the emergence of new successful companies in Latin America.

There are several projects and cases of undisputed success from Latin American countries, having a positive impact on the economy. But, above all, they drive and motivate others to undertake, showing that it is possible to succeed. 

In addition, the range of possibilities is infinite, the problems are so many, that the opportunities to innovate are real. More and more entrepreneurs dare to nurture the region with important companies and increase the number of jobs

 

Successful companies in Latin America that have grown rapidly and that have crossed borders. 

 

  • Etermax

Successful latin companies: Etermax

Máximo Cavazzani, an Argentine programmer who at 24 years old founded his own company, Etermax.

Maybe you have heard of his most famous creations: Apalabrados and Preguntados, this one was the most downloaded mobile game on the planet. It exceeded 250 million downloads. 

Etermax has around 200 employees and offices in different cities around the world: Buenos Aires, as its main headquarters, Montevideo, New York and Berlin. 

 

  • Pollo Campero

Pollo Campero

Under the direction of Juan José Gutiérrez Mayorga and Juan Luis Bosch Gutiérrez. Pollo Campero is the most remarkable brand in Guatemala. Their current income is not public, but the América Economía magazine attributed to them sales of US $ 469.6 million in 2016.

The brand started as a family dream managed to turn its fried chicken into one of the most emblematic flavors of the country.

Nowadays they export their flavor to other countries such as El Salvador, Honduras, Ecuador, the US, Mexico, Spain, Italy, China, India and Indonesia.

 

  • Zumba

Successful latin companies: Zumba

It was the 1990s when Colombian Beto Pérez came up with a fantastic idea, combining Latin rhythms with aerobic exercises. That’s where Zumba was born.

The goal of Zumba is for people to maintain a healthy body with a series of aerobic routines set to the rhythm of music. But Zumba has expanded in such a way that it has built a company of impressive scale. 

In addition to its main business, which is selling videos, it also sells accessories, clothing, video games and has founded institutes in numerous cities around the world.

Beto Pérez has not left anyone out, since he has known how to innovate to reach the entire public, from children to the elderly. 

 

  • Open English

Open English

The real revolution in online English classes came with Open English. Venezuelan Andrés Moreno, founder of the platform, managed to create the company and make it the most famous online tool to learn English in the world.

 

The key to the success of Open English lies in the innovation of the language teaching method. However, this would not have been possible without the flashy and humorous, but powerful ad campaign. 

You might also like: Places to visit in Guatemala.

  • MercadoLibre

Successful latin companies: Mercado Libre

MercadoLibre is one of the benchmarks in Latin America. Founded in Argentina, it is a platform whose purpose is that its users can sell and / or buy basically any product or services through the platform. Just like the latins’ Amazon.

Since its founding in early 2000, Mercado Libre became a resounding success and began to grow exponentially throughout the continent. It is present in many Latin American countries.

Mercado Libre was the first Argentine company to enter the Nasdaq 100 index, trading on Wall Street. Capitalizing 12.4 billion dollars. It is one of the most important technology companies in the world.