A better performance in entrepreneurship human capital, cultural conditions and public policies explains the improvement.
Uruguay is ranked in the fourth place at a regional level and 39 in a global level in the Systemic Conditions for Dynamic Entrepreneurship ranking, made by the Entrepreneur Development Program (Prodem) of the General Sarmiento University (Argentina).
This report, which analyzes 56 countries, points out that Uruguay escalated four positions in regard 2015, thanks to a better performance in entrepreneurship human capital, cultural conditions and public policies.
Human capital is determined by the “existence of a critic mass of entrepreneurs with a motivational profile, with capacities and aspirations to grow. In this field, Uruguay reached the sixth position, with 24,37 points, behind Bolivia (26,85 points), but above Peru (22,24). In this Item Colombia is the regional leader with 51,04 points, followed by Chile (42,35) and Costa Rica (33,20). But the three countries are way behind the global Top 3 (Singapore, Hong Kong and United States), which reached a average of 71.38 points. In Entrepreneurship culture Uruguay was in the tenth position with 42, 67, behind El Salvador (43,48), but above Argentina (42,09). The leaders were Bolivia (65,46), Brazil (65,30) and Peru (64,21).
In public policies Uruguay stayed in the sixth position (41,64) behind Costa Rica (49,69) and above El Salvador (41,24).
Chile (69,04), México (61,09) and Colombia (52,97) were the leaders in this category. Uruguay had the best performance in the field Social Capital, which refers to the easiness of network creations. It was second behind Argentina (51,72) and above México (41,52). The report says that this quality is “present in virtuous ecosystems (like Israel or Silicon Valley), in open societies less polarized and hierarchical, where is more easy to generate spaces between people from different environments and social circles”.
Along with Colombia, Uruguay ranks in the fourth place, with more angel investors working, behind Argentina, Brazil and Chile. Meanwhile in access to financing, Uruguay ranks in the seventh place (24,79). Chile is leader with 35.54 points.
Chile keeps its position as regional leader and drop two positions, being 31 in the World ranking. Brazil is second in the regional ranking and 37 at a global level. Despite their progress the Latin American countries are in the ranking’s lower midpoint.
Mexico and Uruguay are in the 38 and 39 positions respectively. The two advanced four positions in relation to the past year. Colombia is in the 40th position (the same as 2015), Costa Rica is in the 41, going back 4 positions and Argentina is 43, three places below 2015.
Latin America stronger points are the culture and the demand conditions. Entrepreneurship human capital is one of the region’s more important weaknesses. Six of the last countries in the global ranking are from Latin America.
The report suggests that a way to increase entrepreneur human capital is to aim towards segments of potential entrepreneurs. One of these segments is women. Their presence in growing companies is very small if one takes into consideration university graduates and population.
Also the report notes the importance of understanding social conditions, culture and education as impact elements in the formation of human capital. The region social conditions are in the medium-low levels. Researches pointed out that having a strong middle class, favor the rise of dynamic entrepreneurs. The three countries with the biggest proportion of middle class are Uruguay (60%), Chile (53%) and Argentina (48%).
For an “entrepreneurship fertility” a better education is needed. A stronger investment in public education is key, according to the report.
Source: El Observador