business world in Guatemala is having a database of people and networking skills . Due to the strict hierarchical system , it can become difficult trying to do something through the normal path , which tends to be full of red tape and bureaucracy .
ENTREPENEURSHIP : |
POTENTIAL |
AND |
CHALLENGES |
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In 2011 , Guatemala managed to be at no . 7 in the Global Entrepreneurship Monitor ( GEM ) among 54 countries that were evaluated . This definitely shows the great entrepreneurial potential this Latin American country has despite all the issues and situations that hinder its development . The GEM catalogued Guatemala as a factor-driven economy , which means that its economic development is driven by the development of infrastructure , institutions , macroeconomic stability , health and primary education ( Kelley , Slavica , and Mike , page 27 ). They are majorly consumer oriented , and they show a good perception towards entrepreneurial opportunities .
% of Companies registered in Guatemala
Number of Companies
95 % 175,566
5 %
Number of Workers
Microcompanies 1-9 workers 5,816 10 - 19 workers 3,086 20 -49 workers 811 50 - 99 workers 604
More than 100 workers
Another study made by the Economics Faculty of the University Francisco Marroquín ( UFM ) in which they evaluated 2,398 entrepreneurs in Guatemala , presented the following findings :
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29 % of those interviewed had a business idea in mind . 19.31 % opened a new business that year ( 2011 ). 3.8 % have had a business for three years and a half ( TEA – Early Entrepreneurship Rate ). 29.21 % of adults have the potential to become entrepreneurs . 55 % of entrepreneurs are between 18 and 34 years old , and 22 % have between 35 and 44 years old 31 % of entrepreneurs have not been to high school , and 52.9 % do not have a college degree .
� 2.54 % of entrepreneurs close their businesses after three years and a half .
Challenges
There are some challenges for entrepreneurs in Guatemala , some of the most critical ones are :
1 . Lack of Resources
The World Bank noted that “ Guatemala has a poor performance in regards to innovation in areas such as : number of patents , number of scientific publications , investigation and development expenses " ( Centro de Investigaciones , page 24 ). This is understandable considering the country ’ s economic situation , as well as the fact that institutions created with the purpose funding business initiatives lack the mandates , capacity and resources to promote innovation in the country .
2 . Criminality
Since the majority of businesses are small and medium companies with few employees , whatever happens to the owners will have a direct implication on the success of the business . Extortions and robberies are some of the crimes that commonly affect businesses and their
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