Guatemala's entrepreneurial landscape is thriving. In 2023, 45.6% of the adult population was actively engaged in entrepreneurial activities, including both nascent and established entrepreneurs. By comparison, this rate was 19% in 2009 and 32.4% in 2024.
These are among the findings in the latest GEM Guatemala National Report, authored by Mónica Río-Nevado de Zelaya and David Casasola, and funded by Universidad Francisco Marroquín.
Three key reasons explain the growth in entrepreneurial activity. First, entrepreneurship has become a vital source of income for individuals unable to find opportunities in formal employment. Second, it provides the flexibility needed by those with additional responsibilities, such as household care, allowing them to earn an income in a way that fits their circumstances. Finally, culture plays a significant role, as starting businesses to generate income is a long-standing tradition for many Guatemalan families, passed down through generations.
“The upward trend underscores the significance of entrepreneurship as a vital pathway for Guatemalans to achieve prosperity,” stated the report authors.
Recommendations for Creating Conditions for Businesses to Consolidate and Scale Up
With a new government taking office, the report emphasizes the urgent need to further prioritize entrepreneurial activity. Key recommendations include:
- addressing public safety
- improving infrastructure quality
- easing formal business operations
- embracing innovative educational models that equip future generations with quality education, training, and access to tools that enhance entrepreneurs' performance and business outcomes.
Impact
Since joining the consortium in 2009, the GEM Guatemala National Team has produced 14 National Reports and numerous academic studies, providing invaluable data on the characteristics, attitudes, and perceptions of Guatemalan entrepreneurs.
“This body of work has established GEM Guatemala as a permanent reference for diagnosing the state of entrepreneurship in the country,” said Río-Nevado de Zelaya and Casasola. “It has allowed comparisons with statistics from other nations and regions. Being part of GEM has enhanced Guatemala's visibility on the global entrepreneurship map.”
Access the latest National Report at this link. For further analysis on how Guatemala has benefitted from being part of GEM, watch this video.