Biz: Argentina votes to "fly the gate" for start-ups
Despite years of economic uncertainties and the lack of a proper legal framework to help promising startups obtain capital, Argentine entrepreneurs are building a vibrant entrepreneurial ecosystem. Last month, the Senate voted unanimously to approve legislation supporting entrepreneurial activity growth in Argentina.
Aimed at easing the bureaucratic burdens entrepreneurs must bear, and backed by the Association of Entrepreneurs in Argentina (ASEA) and Argentina Association of Private Equity, Venture and Seed Capital (ARCAP), the new legislation replaces the old application, approval and financing procedures that took up to one year for entrepreneurs to complete before they could legally launch their companies.
The passing of the Entrepreneurs’ Law (Ley de Emprendedores) comes at a pivotal time for Argentina. It is aligned with President Mauricio Macri’s push to open up Argentina’s economy and place the country once again in the global market. But, to fully understand the significance of the Entrepreneurs’ Law, it’s important to understand Argentina’s difficult, yet resilient, entrepreneurial past.
For Argentina’s startup community, and organizations like ASEA and ARCAP, Chile has been a prime example of what is possible when entrepreneurs have the backing and support of the government. This is why the passing of the Entrepreneurs’ Lawcomes at such a crucial time. Argentine innovators have always stood out in the region, but with this newlaw, the country’s entrepreneurs can finally go beyond being just a regional success story and take a momentous leap forward as a leader in technology and innovation in the world.
For the last few years, emerging markets have been drawing inspiration for their entrepreneurial laws from another program that has been widely credited as a prime model of successful government intervention in venture capital: Yozma.