The recession erodes entrepreneurship, but does not lower Ecuador from the peak
The fact that Ecuador is the nation with the highest rate of entrepreneurship remains a reality. But it is also a reality that the last year the country faced on one of its weakest economic scenarios. In this context, entrepreneurship suffered and weakened, mainly due to financing issues, in two percentage points: from 33.6% to 31.8% in early entrepreneurship. This means that last year, almost one in three adults had started a business of their own or ran one for a short time, while in 2015 it was one of every three Ecuadorians.
Although the figures have varied, the trend and characteristics of Ecuadorian entrepreneurship are maintained. It is very little the generation of employment, since none start with employees and 31% of them do not expect to create jobs in the first five years.
According to the Global Entrepreneurship Monitor presented and in which the Spanish Business School participates, only 2% of the new enterprises are registered in the Superintendence of Companies and only 6.5% have their enterprise registered in the RISE. These percentages improve when the business is already underway, but in the first three years they continue in low rates of formality (7.1% registered in the Superintendency and 20% in RISE).
The sources of investment are still personal or families, and to set up a business in Ecuador, $ 2,000 are required. (I)