You never know when a chance encounter might result in a new partnership. GEM Ecuador can attest to this first hand!
Ecuador first took part in the GEM project in 2004. But in 2020-2022, the previous team led by ESPAE-Graduate School of Management needed to take a pause, mainly due to the disruptions caused by the COVID-19 pandemic.
Virginia Lasio, formerly the GEM Ecuador Team Leader and a professor at ESPAE, was in Miami last year for a conference on business school management and randomly met with Maria Paula Espinosa, Academic Director at EDES Business School UTPL (Universidad Tecnica Particular de Loja) and Camilo Pinzon, Executive Director at EDES Business School. The conversation turned to GEM and an idea was shared: “Why not partner together?” (UTPL had previous touchpoints with the GEM project).
In the months that followed, this idea came to fruition. The partnership required formal agreements between both universities. Immediately after finalizing, the new GEM Ecuador Team directly coordinated all steps to start the GEM research data collection.
The team is composed of three UTPL professors – Espinosa, Paul Sarango and Maria Dolores Mahauad – and three ESPAE professors – Lasio, Adriana Amaya and Alicia Reyes. Both university teams are involved in various entrepreneurship and innovation projects. The GEM project complements these existing activities.
“The GEM Ecuador team is very excited about this participation and focused on doing an excellent job,” said Lasio and Espinosa. “We hope this co-partnership serves as a good example that other institutions around the world may follow to formulate teams in their countries.”
The Entrepreneurial Environment in Ecuador
Ecuador has been making efforts to foster an environment conducive to entrepreneurship and innovation, according to Espinosa. However, the entrepreneurship ecosystem in Ecuador is still developing, and challenges such as access to funding, bureaucracy and limited infrastructure can impact the startups’ growth.
“The country has taken steps to improve infrastructure, promote technological advancements and provide support for startups and small businesses,” she said. “Government initiatives and the increasing support from various organizations indicate a positive trajectory for entrepreneurship in the country.”
Mahauad believes that the core strengths of Ecuador's entrepreneurial ecosystem are:
- Strategic location: Ecuador's location offers access to larger markets which can be advantageous for trade and business expansion.
- Rich natural resources: Ecuador is rich in resources such as oil, minerals, and agriculture, thus presenting opportunities for entrepreneurs in sectors such as sustainable agriculture, renewable energy and eco-tourism.
- Supportive government initiatives: This includes tax incentives, funding programs, business incubators and accelerators that aim to foster a favorable environment for startups and small businesses.
- Growing digital infrastructure: Ecuador is investing in improving its digital infrastructure, including broadband connectivity and digital services, which can create more opportunities for entrepreneurs.
Weaknesses include:
- Limited access to capital: Access to financing remains a significant challenge for entrepreneurs in Ecuador.
- Bureaucracy and regulatory barriers: The bureaucratic processes and regulatory environment, particularly for new businesses, can be complex and time-consuming.
- Education and skill gaps: There is a need for a skilled workforce that is equipped with the necessary knowledge and expertise to support entrepreneurial ventures.
- Limited market size: Ecuador's domestic market is relatively small compared to larger economies, which can restrict the growth potential for certain businesses.
Motivations for Joining GEM
For Lasio, the return to GEM and re-launching under this new partnership brought back memories to the early days when the Ecuador team was first created back in 2004.
“Skipping GEM for three years was not in our plans, but we were forced by the pandemic crises to reorganize priorities,” said Lasio. “GEM is a necessity, as Ecuador does not have updated data on entrepreneurship at this important time. We need solid and robust data that reflects economic changes, new entrepreneurs and new business models.”
From the UTLP perspective, Sarango notes: “The main motivation was to be part of the most prestigious and extensive study on entrepreneurship worldwide and help to maintain Ecuador as a country featured in GEM Global Reports. In addition, we’re encouraged to provide highly relevant data for the country – entrepreneurs, academics and civil society – to strengthen research, decision-making and national policy processes. Our participation provides opportunities to collaborate with academics, researchers and experts worldwide.”
The GEM Ecuador Team is keen to compare Ecuador’s results this upcoming year to pre-pandemic numbers. Many stakeholders throughout the country are also keep to see such results. Hence the new GEM Ecuador Team will be embarking on a comprehensive outreach of the research.
Concluded Espinosa: "Through the GEM report, stakeholders can create value in unique ways, ranging from proposing solutions to real entrepreneurship problems, making informed decisions on supporting entrepreneurs and fostering thriving entrepreneurial ecosystems, to developing more effective and relevant educational and research programs in entrepreneurship. We all have high hopes for the results of this major global study."