Three out of ten adults start businesses in Ecuador

Ecuadornews:

For the fifth consecutive year, Ecuador heads the indexes of Early Entrepreneurial Activity (TEA) in the region, according to the measurement made since 2007 by the Graduate School Of Management, of the Espol (Spain) within the Global Entrepreneurship Monitor ( GEM).

The measurement is made globally since 1999 by Babson College and London Business School and in this edition of the 2017 period, 54 economies from Asia, Africa, Latin America, North America and Europe participated. The report for Ecuador, launched by Spain, was presented yesterday in Guayaquil, where Virginia Lasio, director of GEM Ecuador, explained that around 3 million adults, between 18 and 64 years old, started the process of starting a business (nascent entrepreneurship) or owned one less than 42 months old (new venture).

This, according to Lasio, represents 29.6% of the adult population, with the highest TEA in the region, followed by Peru with 24.6% and Chile with 23.8%. The measurement gathered information from 2,060 people nationwide and from 37 experts.

However, the expert warned that having a high ASD is not always a reason for recognition in all cases, because it analyzed that this would mean that the entrepreneurial activity increases at the rate of decreasing the formal and adequate employment positions.

Lasio’s theory is confirmed by another result that the study shows: the motivation that entrepreneurs have to start a business.

In Ecuador, 42.3% started out of necessity, due to lack of income; while 36.7% do it for improvement opportunities. In the other countries of the region, such as Chile (59.7%), Peru (62.3%), Colombia (59.4%), it is mainly undertaken for the opportunity of improvement.

Another variable of the study is senior entrepreneurship. The TEA senior in 2017 stood at 25.30%, the lowest of the last four years. However, seniors (from 50 to 64 years old) undertake almost at the same time as young people (from 18 to 29 years old) in Ecuador.  (I)

Source: https://www.eluniverso.com/noticias/2018/08/08/nota/6895907/tres-cada-diez-adultos-emprenden-ecuador