Guatemala s Entrepreneurship Ecosystem. August 2015
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1 Guatemala s Entrepreneurship Ecosystem August 2015
2 About the study Guatemala is seeing an important rise in entrepreneurship throughout the country. However, according to data from the Global Entrepreneurship Monitor (GEM), only 12% of Guatemalans start a business. Of those who start a business, only 9.2% generate profit, and only 7.4% of these enterprises survive after 42 months. For this reason, the Regional Chapter for Central America and Mexico of Aspen Network of Development Entrepreneurs (ANDE)* developed this study with the following goals: Identify organizations who are working in the sector Identify where the gaps are for supporting entrepreneurs Identify potential partners for the organizations Identify where organizations can collaborate to promote entrepreneurship in Guatemala With those goals in mind, we designed a questionnaire with the following criteria: Type of intervention of the organization Stage they support Type of capacity development they offer Financial support they offer (debt, investment, etc.) Sector they support Geographic presence We thank the 33 participant organizations that are part of this first stage of this study, in which we are able to visualize the support they offer, which areas are stronger and where collaboration is needed to strength the entrepreneurship ecosystem. *ANDE es una red global de organizaciones que impulsan el emprendimiento en economías emergentes como una manera para crear prosperidad, fomentando relaciones y colaboraciones más fuertes en el ecosistema a nivel local e internacional. (
3 Type of support Capacity Development Financial Support Entrepreneurial Ecosystem in Guatemala Stage Idea Startup Early Stage Expansion Stage Growth Stage Consolidation Campus Tec Campus Tec Fundación Namaste Guatemaya Media Splash ASOPYME Ministerio de Economía Pomona Impact Grupo DNA Semilla Nueva SQMOS PyME Capital Root Capital Alterna Emprende U Centro Municipal de Emprendimiento OXFAM Byoearth TechnoServe Mercy Corps - Micromentor PRONACOM Voces Vitales Guatemala PRONACOM Iniciativa PRO Bpeace Mejoremos Guate Ecofiltro Legend Kirzner Entrepreneurship Center (UFM) Swisscontact U. Mesoamericana Chamba Eslabón Fundación Fundasistemas Women Agriculture Technology Social Entrepreneurs Youth All Universidad InterNaciones TIGO EPVEN *The organizations of Financial Support that are in Green offer financing and capacity development.
4 Presence at national level Geographic presence Totonicapán Quetzaltenango Suchitepéquez Sololá Sacatepéquez SQMOS All the organizations have presence in Guatemala City, except Fundación Fundasistemas and Fundación Namaste Guatemaya.
5 What kind of support do you offer? 12 More than two-thirds of the organizations provide capacity development to entrepreneurs, a critical aspect to promote the development of startups in a short and long term. One third of the organizations carry out research on entrepreneurship, which facilitates the development of better models, processes and strategies, to promote in a more effective way the ecosystem. However, only 12 organizations provide financial support, a sector which need to be developed in Guatemala. 4 Support to conveners 12 Research about the topic Give financial support Type of support 13 Education on entrepreneurial culture 25 Training to entrepreneurs
6 How do organizations provide these capacities? Trainings & Courses 15 Financial & Accounting Support 12 Leadership Programs 10 Mentoring 14 Accelerator 11 Market research & Analysis 14 Businesses Plan / Incubation N=28
7 Capacity Development Organization Alterna ASOPYME Bpeace Byoearth Campus Tec Centro Municipal de Emprendimiento Chamba Ecofiltro Emprende U Eslabón Fundación Fundasistemas Fundación Namaste Guatemaya Iniciativa PRO Kirzner Entrepreneurship Center (UFM) Media Splash Mercy Corps Ministerio de Economía Business Plan Development / Incubation Market research & Analysis Acceleration Mentoring Leadership Programs Financial & Accounting Support Trainings & Courses Oxfam Pomona Impact PRONACOM Root Capital Semilla Nueva SQMOS Swisscontact Technoserve Universidad InterNaciones Universidad Mesoamericana Voces Vitales Guatemala EPVEN
8 Investments in Guatemala From the 33 organizations that participated in the survey, only 12 provide financial support in different forms: capital, debt in loans and mezzanine, and others, less than a half of the support programs for entrepreneurs are providing capital, which is fundamental for the development and growth of a startup. Other (Grants) Deuda (mezzasine) Debt (loans) Capital Organization Alterna ASOPYME Campus Tec Fundación Namaste Guatemaya Grupo DNA Media Splash Ministerio de Economía Pomona Impact PYMECAPITAL Root Capital Semilla Nueva SQMOS Capital Debt (loans) Deuda (mezzanine) As we can see, it is necessary to increase not only the number of organizations that support financially entrepreneurs in Guatemala, but also innovate and diversify the types of financial support they can access.
9 About the study We want to thank all the organizations that participated in this survey, and recognize their great contribution they make everyday to the entrepreneurial ecosystem in Guatemala. If you are interested in being part of this map, please fill this survey. For more information you can contact the regional staff of Central America & Mexico ANDE Chapter: Katia Dumont Regional Manager ANDE Central America & Mexico Rosario Uriarte Programs Coordinator ANDE Central America & Mexico
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