Entrepreneurship in Chile continues to develop, supported by government initiatives. According to the Global Entrepreneur Monitor (GEM), Chile is the most entrepreneurial country in the world, ahead of the US and India and alongside Guatemala. Many factors such as start-up funding, education, innovation system, and entrepreneurship environment contributed to Chile’s number one ranking.
With a skilled workforce, a thriving entrepreneurship environment, solid macroeconomic fundamentals, and government support, Chile is the destination of choice for innovative businesses seeking to incorporate a company in Latin America.
Overview of entrepreneurship in Chile
Entrepreneurship in Chile is on the rise. According to GEM 2018-2019 data, entrepreneurial activities grew from 13% in 2008 to 25.1% in 2018. In addition, Chile has a platform called “Create a Company in One Day” which has accounted for 386,310 new businesses between 2013-2018, with an average of 351 new business per day. Government measures, such as Create a Company in One Day are an example of Chile’s focus on driving entrepreneurship in the country.
Although not necessarily all companies survive in the market, the outstanding number of companies created over the past years are testament to the supportive environment for entrepreneurship in Chile.
Entrepreneurship in Chile is favored by the availability of a skilled workforce ready to contribute to innovation. In fact, at the 2018 international exam that measures students’ knowledge in math, science, and reading, PISA (Programme for International Student Assessment), Chile ranked first in the region, followed by Costa Rica and Uruguay. This result demonstrates the progress of education the country has had over the past years.
Chile is one of the countries that has the most talent in software development in the region. According to Stack Overflow 2018 data, Chile has a reported availability of approximately 61,068 software developers, which ranks the country fifth in numbers as compared to the rest of Latin American countries. In addition, the Chilean software developers and engineers have obtained high positions at global hacking competitions.
Accessing talent for your business can be easier in Chile. Thanks to the government support Chile is one of the leading countries in education and skilled workforce in Latin America.
Chile favors doing business
Chiles’s regulatory procedures are considered amongst the most efficient in the region.
Chile ranks at position 56 out of 190 countries at the 2019 Ease of Doing Business Index developed by the World Bank. This puts Chile in the first place in the region and signifies that Chile’s regulation practices to set up a business, get credit, trade internationally and manage taxes is amongst the most efficient in Latin America.
Businesses seeking to enter the country can engage with a legal representative and incorporate their company without hurdles. As a foreign venture it is recommended to obtain assistance to determine which type of entity better fits your business model.
Chile is a pioneer in boosting entrepreneurship worldwide. Chile’s Start-Up accelerator has inspired countries such as Peru, Colombia, Brazil, Argentina and many more who have started their accelerators supported by the government as well.
Innovation and entrepreneurship in Chile increased as a result of governmental incentives. Chile has a National Innovation plan that supports entrepreneurship and innovation through diverse public entities. The country developed diverse programs that subsidy entrepreneurship in the country.
Funding programs include:
- Start-up Chile
- Seed Capital (Capital Semilla)
- Angel Network (Red de Ángeles)
- Risk Capital Funds (Fondos de capital de riesgo)
Perhaps the most popular example is Start-Up Chile. This startup accelerator has gained world recognition. The accelerator offers companies from around the world equity-free funds for up to US$80 0000.
The results from this program have been remarkable, funding more than 1600 companies from around the world until 2017. Through this accelerator, start-ups are offered a variety of benefits in Chile, including visas, offices and more. Key statistics from the program include a portfolio valuation of US$1.4 billion, survival rate of 54.5% and retention rate in Chile of 56.4%.
The purpose of Startup Chile is to put the country in the global radar for entrepreneurship and innovation with national and international talent, as well as to contribute to the entrepreneurial culture and innovation.
The government continuously finances projects aligned to current world issues. For instance, a new program recently launched, named Fingerprint (“Huella”), is an accelerator for companies that solve social and environmental problems. Winners from this contest can obtain up to US$80 000 and all the benefits that an accelerator offers, such as free working space and support to make a business profitable.
Innovation and entrepreneurship in Chile are promising – Enter the market with Biz Latin Hub
As innovation and entrepreneurship in Chile increase, the country becomes more ready to demand and provide innovative solutions to solve world issues. In addition, the country’s stable economy and efficient, simple regulatory system favor foreign investment.
Investors seeking to enter the world’s most entrepreneurial country should obtain assistance to select a legal entity that better fits their business model and comply with tax requirements.
At Biz Latin Hub we help entrepreneurs from all over the world enter the Chilean market, our team of local lawyers and accountants is ready to assist you with company incorporation, commercial representation, trademark registration, visa services and more. Contact us today and get your venture started.
Learn more about our team and expert authors and check our video on how to form a company in Chile!