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.
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
- Human capital: Science and technology graduates and engineers are very important in Latin America.
- Intellectual property: Intellectual property rights can be an important bureaucratic task for entrepreneurs in the region.
- 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.
- 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.