Chile tops the main entrepreneurial ecosystems in Latin America according to the report of the Global Entrepreneurship and Development Institute (GEDI). In Hispanic Entrepreneurs We give you more details about the report, among other information that interests you if you are thinking of opening your own company.
What does an entrepreneurial ecosystem refer to?
The entrepreneurship ecosystem refers to the set of characteristics that include resources, infrastructure, entrepreneurial attitude, human capital, cultural support, among others; which favor entrepreneurship and innovation in a given space.
In Hispanos Emprendedores we have talked before about what is the entrepreneurial ecosystem and what are its components. This time we will focus on discovering the main entrepreneurial ecosystems in Latin America, based on the Global Entrepreneurship Index of the GEDI.
To do this, you must first know what are the pillars of entrepreneurship ecosystems. In this sense, the GEDI lists 14 points that it divides into three subscripts: attitudes, skills and aspirations.
Pillars regarding attitude:
- Perception opportunity.
- Initial skills.
- Acceptance of risk.
- Networking.
- Cultural support.
Pillars regarding skills:
- Startup opportunity.
- Technology absorption.
- Human capital.
- Competition.
Pillars regarding skills:
- Product innovation.
- Process innovation.
- High growth.
- Internationalization.
- Risk capital.
In the index, the GEDI evaluates each of these points in 137 countries and classifies them according to their performance. From there the Global Entrepreneurship Index (GHG), whose latest report, published in 2018, is available on the GEDI website.
Main entrepreneurial ecosystems in Latin America
On several occasions, Chile has achieved first place among the ecosystems of Latin America and the Caribbean. And in the latest report presented by the institute it is no different. This time it is ranked 19 globally. After this, the next closest country in the region is Puerto Rico, which appears at 41.
Chile obtained a score of 58.5, less than in 2017 when it obtained 58.9 and fell one place in the ranking.
Another country that had a significant drop was Ecuador, which dropped five places from 20.9 to 20.5 in the same period.
The areas of greatest strength in Chile are risk acceptance and product innovation. In recent years, the country has stood out as one of the most innovative in developing products and services that are new to customers.
The pillar on which you need to work the most is innovation processes. This includes the use of new technologies and access to quality human capital in the field of STEM.
In the case of Puerto Rico, which is the second country in the region to appear in the ranking, it ranked 41st. Its greatest strength is human capital and the weakest area is venture capital.
When studying the world map of entrepreneurship, the GEDI has found an entrepreneurial spirit in Latin America. However, the biggest obstacle is weak economic institutions. On the other hand, government systems also represent a challenge to overcome.
Colombia appears third in the region and 47 in the global index. With a score of 38%, the GEDI highlights product innovation and risk capital as its strengths; but the perception of opportunities must greatly improve.
General results for Latin America and the Caribbean
When evaluating the main entrepreneurial ecosystems in Latin America, we find that the first 15 places are distributed as follows:
- Chile 59%.
- Puerto Rico 42%.
- Colombia 38%.
- Uruguay 35%.
- Barbados 34%.
- Costa Rica 33%.
- Belice 30%.
- Peru 28%.
- Panama 28%.
- Trinidad and Tobago 24%
- Dominican Republic 24%.
- Argentina 24%.
- Jamaica 22%.
- Ecuador 20%.
- Bolivia 20%.
It is surprising that Brazil is not among the top positions, but is ranked 16 in the region's ranking. Internationalization is the weakest aspect. But there are other areas where it scored very low as well such as human capital, startup opportunities, and venture capital.
Generally speaking, the region's greatest strengths have to do with business start-up skills and product innovation. Entrepreneurs are taking advantage of new technologies to apply them to their businesses and developing new products.
According to the report, the region is more balanced than others, but it must focus on improving innovation and venture capital processes.
You know what are the main entrepreneurial ecosystems in Latin America. This information is valuable in evaluating where to start a business.
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