Entrepreneurship in Argentina
Argentina is one of the three Latin American countries that is part of the G20. Its economy with a GDP of approximately US$500 Billion, is the third largest in Latin America and the second largest in South America. The country is rich in natural resources which have given rise to number of agriculture and energy related enterprises.
Since 2018 the country’s economy has contracted by approximately 2% every year. High uncertainty and regular downturns in the economy is not favorable for domestic businesses and for the young talent graduating from its universities. However, this works well for the local startups and foreign multi-national companies to procure good quality talent at a reasonable cost. Education in Argentina is comparable to European standards, hence it attracts a lot of interest from the European companies, not just for the lower procurement costs, but also due to the cultural similarities they find less friction and lot of ease in doing business with Argentinians. The government is also inviting entrepreneurs globally to setup operations in the country, thereby attracting investments in Argentina. As per the world bank data Argentina ranks 126 among 190 economies.
Buenos Aires the capital of Argentina, is known for its high-quality education and talent, resulting in 90% of all startup activity of Argentina. The city is known for many bitcoin entrepreneurs. MercadoLibre an ecommerce platform is Argentina’s most successful startup. AreaTres the first coworking space in Buenos Aires was launched in 2009 and is now a hub for entrepreneurship with approximately 200+ members and 60+ companies.
Numerous coworking spaces, accelerators and business angel networks provide for the necessary infrastructure for the startup ecosystem to flourish even though the economy keeps struggling. Entrepreneurs are starting-up in high tech fields of AgTech, FinTech, BioTech, Telecom and many others. Agriculture plays an important role not only as it is a dominant occupation traditionally, but also in being the source of expertise and capital for the hundreds of AgTech startups.
Social and non tech entrepreneurs are also making their mark alongside the tech entrepreneurs. Nilus Online founder Ady Beitler is reducing food waste and ensuring nutritious food for low income families. Speaking to a local entrepreneur, Ann Noguer founder of Puentes Abroad revealed many insights of entrepreneurs in Argentina, such as being comfortable with taking risks, accepting challenges and being resilient in the face of adversity.
With a budding startup ecosystem, the government supporting entrepreneur migration through its immigration laws and entrepreneurs like Ady Beitler, Ann Noguer and many others, Entrepreneurship in Argentina is set to see good times, despite a volatile economic environment.
Useful links / References
Argentina is wooing Entrepreneurs with a new law
10 Argentine Startups to Watch For
Why is Argentina a regional hub for Entrepreneurs?
Argentina Entrepreneurial Ecosystem
