Among Latin American countries, Ecuador has the highest rate of Total early-stage Entrepreneurial Activity (TEA, the percentage of 18-64 population who are either a nascent entrepreneur or owner-manager of a new business). This and other findings are highlighted in the new Global Entrepreneurship Monitor Ecuador Report.
“With a TEA of 32.7%, it is evident that our country maintains a high entrepreneurial spirit that is in Ecuadorians' DNA," said Virginia Lasio, ESPAE professor and Director of GEM Ecuador. "Most individuals start a business because they don’t have any other employment alternatives. An interesting finding is that young and more educated entrepreneurs state that they are motivated to make a difference in the world. These entrepreneurs are also knowledgeable of the SDGs and are more conscious about the social and environmental impact of their business.”
This marks the first GEM Ecuador report since the pandemic period. A new GEM Ecuador team was established that brings together ESPAE, ESPOL's Business School, and UTPL, through EDES Business School and the Faculty of Economic and Business Sciences.
“The return of GEM in Ecuador not only marks a milestone in evaluating entrepreneurship in the country but also offers valuable perspectives for all interested in economic and social development,” said Ma. Paula Espinosa, Academic Director at EDES Business School.
With great reception, the results were highlighted during the report launch event on 26 and 27 June in the cities of Quito and Guayaquil respectively. A panel discussion about the path of purpose-driven entrepreneurship in Ecuador was led by Professor Adriana Amaya. During the panel, Bianca Dager from Setenta-Treinta highlighted that "entrepreneurship without purpose is a ship adrift." She also noted that the legal framework, incentives, and regulations in Ecuador are not perfect, but they exist and there should be greater awareness to take advantage of them.
Sergio Moraga from Colectivo Cabos emphasized the importance for entrepreneurs to make a difference providing concrete solutions to community problems and to learn from mistakes. He also stressed that trends like ethical banking should be embraced in Ecuador.
The report provides an in-depth view of the entrepreneurial ecosystem in Ecuador, revealing opportunities, challenges, and future perspectives. Other key findings are:
- Age Distribution: The majority of early-stage entrepreneurs are between 25 and 34 years old, indicating a youthful trend in entrepreneurial initiatives.
- Education: Approximately 14% of entrepreneurs have higher education, positively influencing their ability to innovate and adopt sustainable practices.
- Motivations: 40% of entrepreneurs are motivated by the opportunity to increase their income or be independent, while 91% are driven by necessity.
- Awareness and Commitment: 67.56% of Ecuadorian entrepreneurs consider environmental implications in their business decisions. Although this percentage is significant, it is still below the regional average, indicating room for improvement in sustainable awareness and action.
The report can be accessed at the following link.