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Youth Entrepreneurial Ecosystem In Argentina

A first step to stimulating entrepreneurship among the young people we are working with as youth workers and not-for-profit organisation is mapping and measuring the existing entrepreneurial ecosystem in our country and exchange the best practices among ourselves. The purpose of this analysis is to identify learning, development and funding opportunities for young people who want to launch their start-ups or social projects. We will collect all the data from 6 different countries and publish it in only one guide.

For the purpose of mapping, the  entrepreneurial ecosystem is defined as a product of three elements:

1. the surrounding environment, more precisely the business environment and investment climate,

2. its interacting actors, and

3. the evolving culture and attitudes.

Question 1

What is the national strategy of your government regarding start-ups and youth entrepreneurship?

• Ley 25300. Ley de fomento de PyMEs (Law for the promotion of SMEs)

• Ley 27349. Ley de Emprendedores (Entrepreneurs Law)

• Programa “Argentina Emprende” ( "argentina undertakes" program)

The incorporation of the Ley PyME was a great step, in which small and medium-sized companies were recognized for the role they play in the economic development of the country, through a tax reduction that improves competitiveness, and with a prize to investment, an incentive for PyMEs to grow.

The recently approved Ley de emprendedores establishes a new type of society, la sociedad por acciones simplificada (SAS), which may be established in 24 hours over the Internet and it can also obtain the CUIT in the AFIP and open a simplified bank account in the same period, from anywhere in the country and with a lower cost than the current system. Takes effect in March 2017, and is part of the  Argentina Emprende program, demonstrating that the country is once again in the right direction. This program implements public policies to contribute to training, access to financing, information, and improvements in physical infrastructure and services. It also provides access to the market, transfer of science and technology and promotion of networks and communities of entrepreneurs. All the mentioned actions are destined not only to high potential entrepreneurs, but also to micro-entrepreneurs and social entrepreneurs. This process seeks to remove obstacles, generate incentives, give access to certain information and thus put the country on its feet.

Question 2

What is the strategy if the Education/Labour Ministry regarding early entrepreneurial education?

The implementation of a model which provides the student more information and a greater variety of options of similar quality but different profile and requirement of preparation and time when choosing a career, will allow the state to effectively educate students for their future work in the country. It is essential to agree on this type of higher educational system as a part of thinking of Argentina 2030.

Establish a new continuous training system, in which the private sector becomes the driver of content, the helper to reduce the skills mismatch, and the updater of technological knowledge.

The Job Ministry should help entrepreneurs grow, contributing to the development of entrepreneurism and innovation ecosystems throughout the country.

It should stimulate the quality jobs generation, encourage the creation of companies and the promotion of innovative ideas.

Is framed in the Argentina Emprende Program, which includes training and financing programs for the entire entrepreneurial ecosystem.

In the Employment Offices, personalized attention, permanent accompaniment, guidance and information on the local labor market is provided. Access is given to training and free professional training courses, employment programs, assistance to micro entrepreneurs, workshops for job search and jobs. 

There must be more articulation between the business world and the education system.

90% from the total of schools in the country have everyday, only four hours of classes. This gives students an opportunity  to know not only the Argentine businessmen work, but also the productive projects that take place in their region.

There should be entrepreneurship courses dictated in schools, combined with a cross-wise education since primary as other countries are beginning to do. This is already part of the Ministry agenda, however, including it in the school program will take a long time due to the fact that it requires previous teacher capacitation.

In Argentina there must be almost 7 million adults who did not finish school. In response to that, the Argentina Emprende Academy, which is a system to teach different skills in a non-formal, free way, was created for those who are interested in capacitate throughout the country.

The Economy Knowledge National Strategy must distinguish between 2 tactics to promote the reduction of competency gaps. It is always enriching to have the private sector involve as a driver of content that may help reduce skills gar and update knowledge about technological progress. On the other hand, the implementation of a proactive educational system, will foment the graduation of students who will be economy transformers, educated for creativity and entrepreneurship. According to the above, new curricular designs that foster creativity and stimulate the ability to undertake as fundamental objectives for their education are relevant to achieve a better performance in their work life.

Question 3

Who are the main providers of entrepreneurial education in your country? List 3 to 10 public, private and nonprofit entities actively involved in creating learning contexts for young people.

 

• Municipalities

• Universities

• Institutes

• Schools

• ASEA Argentine entrepreneurship association

• MATERIABIZ business school

• RECIDUCA FUNDACIÓN

• GDFE

• CAECE Argentine chamber of commerce and service - university

 

Municipalities

They must help citizens to develop their projects, create job positions, and ensure their well-being. They must generate a climate of confidence for new investors, and a policy of entrepreneurism training for better performances.

 

Non-profit Associations

ASEA: Argentina´s Association of Entrepreneurs. Is an NGO that seeks to promote entrepreneurship in the country, through the influence on public policies and the accompaniment of entrepreneurs throughout it. Helping in all enterprise stages of growth.

VISION: build an entrepreneurial nation with more and better ventures.

MISSION: influencing public policies and accompanying entrepreneurs through actions and programs in order to achieve a favorable context to undertake in every corner of the country.

MATERIABIZ business school

Founded by and for SMEs, which believes in collective knowledge. This knowledge is housed in each experience, observation and conversation and is the basis of a more egalitarian society..

REDIUCA FOUNDATION

Work training: Introduce young people to work culture. Promote the development of skills and labor competencies in young people. It might improve their chances of accessing quality jobs.

GDFE

It is a non-profit civil association formed by foundations and companies committed to sustainable development. Main work objectives are based on:

• Strengthen the ecosystem and the management of Private Social Investment (ISP) through tools, training, publications and innovative co-creation spaces.

• Promote an effective articulation between Companies, State and Civil Society to jointly address the challenges of Sustainable Development.

• Provide a critical and sensitive reflection that influences public opinion and contributes to the different actors identifying their role for the public good.

CAECE Argentine chamber of commerce and service - university

The Entrepreneurs enterprise has been created by the Argentine Chamber of Commerce and Services (CAC) and the CAECE University. It is a creative and dynamic space, intended for all types of entrepreneurs, both those who have an interest in starting a project, and those who have a prototype or a start-up.

The program of activities of the Entrepreneur's Factory consists of several initiatives in which entrepreneurs are assisted at different stages of their journey. The Entrepreneurs Club will seek to develop specific skills with a focus on practice and the generation of ventures. And from the training of CAC Emprende, specific topics will be discussed and will include the participation of specialists and entrepreneurs who will share their experiences.

 

Schools, Universities, Institutes

Schools

Business education must be a compulsory teaching knowledge in schools, for young people not to depend on anyone to be self-sustaining, and to be their own employer and create their own future.

Institutos

English institutes: prepare children and young people to work with confidence. As private institutions, they adapt teaching methods to new demands. Stimulate students to develop skills, face challenges, and become creative by incorporating project-based and cooperative learning.

Universities

Universities are slowly starting to include subjects, specializations, services, etc. to promote entrepreneurial activity among its students, making it more popular and making it be considered an option when it comes to professional career.

Universidades públicas

National University of Cordoba (UNC)

University of Buenos Aires (UBA)

National University of Rosario (UNR)

National Technological University (UTN)

Universidades privadas

Catholic University of Cordoba (UCC)

21 Century University

Private University UADE (Universidad Argentina de la Empresa): The UADE Entrepreneurs Center aims to promote entrepreneurship and innovation. It offers UADE students and graduates with the desire to undertake or who are already doing it, orientation services, training, technical assistance and access to external financing and containment through an entrepreneurial ecosystem and a collaborative work space of their own.

 

Question 4

What public/private grants are available for young people to launch their start-ups at national/ international level?

(please add links and a short description)

The Labors Ministry created "The Argentinian Green Job". It is a joint project between the labor portfolio and the International Labor Organization, which are jobs that contribute to preserve and restore the environment either in traditional sectors such as manufacturing or construction or new emerging sectors such as renewable energy and efficiency energetic

Green jobs allow:

Increasing the efficiency of energy consumption and raw materials

Limiting greenhouse gas emissions

Minimizing waste and pollution

Protecting and restoring ecosystems

Contributing to adaptation to climate change

At the corporate level, green jobs can produce goods or provide services that benefit the environment

https://www.argentina.gob.ar/noticias/el-empleo-verde-en-la-argentina

The Seed Fund is a program launched by the Entrepreneurs and SMEs Secretariat of the Ministry of Production, aimed to contributing to the strengthening of enterprises in their first years of development. The fund provides loans of up to $ 250,000 at zero rate for those who start a project, productive venture or project with social, environmental and / or gender perspective. This is done through a network of incubators that are more than 400 institutions that work in the accompaniment and selection of projects.

https://www.argentina.gob.ar/produccion/fondo-semilla

The Entrepreneur Capital Fund (Fonce) brings together the Seed Fund and the rest of the programs (Fondo Aceleración and Fondo Expansión). This fund deals with the development of financing programs for entrepreneurs across the country, both for for-profit entrepreneurs and for those who seek primarily a social impact, including cooperatives.

On the other hand, entrepreneurs with a high-impact technological innovation profile that do not have much risk and do not go through any analysis are managed with investment where there is someone who takes a risk. Another alternative is co-investment. The State will co-invest with the private sector to achieve more investment. With this measure, the percentage of entrepreneurs working with this system will rise with respect to the rest of Latin America.

https://www.argentina.gob.ar/conseguir-financiamiento-traves-de-un-fondo-de-capital-emprendedor

 

National Bank Argentina

Through the program Nación Emprende, credits for Microenterprises and Credits for Entrepreneurs are provided.

 

https://www.bna.com.ar/Empresas/NacionEmprende/FinanciamientoParaMicroempresas

PAC entrepreneurs

Non-refundable loans for entrepreneurs or SMEs with less than two years old.

If you want to develop a business or you already have a productive project in progress, you can receive help from an incubator and access a financing of up to $ 400,000 without having to return them. The loan is free and 100% digital.

 

https://www.argentina.gob.ar/acceder-pac-emprendedores

US subsidies

The Public Funds Program of the Embassy of the United States in Argentina (PAS) opened a call in 2018 to deliver funds through its Public Diplomacy Grants Program.

The Program of Funds for Cooperation and Exchange Projects provides support to projects of academic, cultural, educational institutions and other non-profit organizations and / or people from Argentina and the United States that respond to the objectives of the Embassy of the United States. U.S:

"The promotion of security and economic prosperity through projects that seek greater understanding among the people and institutions of the United States and Argentina."

The estimated amount of each grant ranges between $ 10,000 USD and $ 100,000 USD.

 

https://gestionandote.org/embajada-estados-unidos-argentina-ofrece-subvenciones-proyectos-publicos/

Question 5

What are struggles that youth entrepreneurs from your country face?

The difficulties to undertake in Argentina

According to the president of the Association of Entrepreneurs of Argentina (ASEA) "Nowadays, you need a lot of perseverance, resilience and passion to start in the country, because the beginnings are not easy and the context makes it difficult."

There are many programs in Argentina today to promote entrepreneurship both in the private sector and in the public sector in the 3 levels of government. However, economic and cultural problems make it difficult to implement most of the proposals.

The first step to protect the project is to create it with the corresponding legal framework, which depends on capital, responsibility and other factors. Choose and put together a corporate framework requires time, effort and money, but it is essential to have something to protect.

A good multidisciplinary team is also essential, with a group of people who can combine what they do very well.

 

Question 6

Name few private companies that support entrepreneurial education through Corporate Social Responsibility programmes, hackatons, accelerators etc.

(Links and a paragraph by company are highly appreciated)

Volkswagen Group

Has a long worldwide history as a socially responsible company.

VW Argentina considers key elements of its Social Responsibility strategy: strong support for internal and external education, environmentally friendly manufacturing, the appropriate work environment and the construction of institutional alliances.

In this way:

Our country can be competitive if it has highly trained people. Thus, it carries out educational programs aimed at all levels of academic training for people outside VW as well as their employees. Programs such as the Ferdinad Porsche Institute and the Dual Plan, among others equally important.

Environmentally friendly practices are concentrated in the Comprehensive Environmental Management System whose foundations are the promotion of environmental protection and preventive care practices. In this sense, we have adopted the global strategy "Think Blue Factory", adapting it to our reality. In this way, contributing to the Environmental Management Program significantly reduced the gas, water and electricity consumption of the entire Industrial Center.

All the actions linked to the collaborators are framed under the Strategy called RSI "Internal Social Responsibility" whose main axes are the integral development of each collaborator, the balance between work and family life and respect for human rights within the organization.

https://www.volkswagen.com.ar/es/institucional/responsabilidad-social.html

Securitas

This RSC strategy is based on the generation of quality work, transparency through Corporate Governance and training of guards through the Securitas Institute.

Their contribution to the industry is to share the knowledge as a global company to improve the development of the Private Security industry in Argentina; becoming the best choice as Suppliers for customers.

https://www.securitasargentina.com/RSC/

Toyota Compañía Financiera de Argentina (“TCFA”)

Seeks to generate interest in employees, encouraging their participation in the projects.

The CSR programs are manifested in different ways:

Contribution to education in the Municipality through work in conjunction with the Ministry of Education of the Municipality of Vicente López

Financial contributions to different institutions / Donations

Environmental care.

https://www.toyotacfa.com.ar/responsabilidad-social-empresaria

Sancor Group Insurance

Undertook a systematic process to make CSR an integral part of his institutional and business model and make it possible to add it to its management, motivated by its commitment to society and the goal of improving performance, tending to promote increasingly productive social interactions.

In order to carry out this process, the company decided to technically follow the guidelines of the International Standard for Corporate Social Responsibility prepared by the Institute for Ethics and Social Responsibility -of London-, called "AA1000" (AccountaAbility).

https://www.gruposancorseguros.com/ar/es/grupo-sancor-seguros/home-rse/origenes-rse?AspxAutoDetectCookieSupport=1

 

Santander Bank

Committed to higher education, through Santander Universities, has been collaborating for 20 years with universities with an unique initiative in the world, which distinguishes it from other national and international banks and financial institutions.

The bank tops the list; "Global Fortune 500"; as the company that more invests in Corporate Social Responsibility related to education.

More than 3,000 university projects have been supported in 2016 for the improvement of education, the creation of opportunities for university students and the encouragement of entrepreneurial culture, research and innovation.

https://www.santander.com/csgs/Satellite/CFWCSancomQP01/es_ES/Corporativo/Sostenibilidad/Santander-Universidades/Banco-Santander-comprometido-con-la-educacion-superior.html

IBM

IBM Education solutions with cognitive technology help teachers and students to improve their results, from kindergarten to their first job. With IBM Education solutions and services, learning can be personalized, increasing research capacity and optimizing operations.

https://www.ibm.com/ar-es/industries/education

Endeavor Argentina

Contributes to the development of the country through the promotion of the entrepreneurial culture; identifies high-impact entrepreneurs and provides them with support. In addition, it articulates and promotes the development of massive support ecosystems for entrepreneurs of all the country.

https://www.endeavor.org.ar/

Wayra

It is focused on supporting ventures in the technology field and in the digital environment or mobile support through access to financing, administrative management, legal advice and training. Wayra is a stimulating and creative environment, which offers basic infrastructures and administrative support.

https://ar.wayra.co/

 

Question 7

List 1-5 start-up hubs from your country and what type of services they provide for new entrepreneurs

IncuBA & Baitec City of Buenos Aires Government

physical incubation programs for design, creativity and innovation and technology projects, respectively.

Business Incubation and Acceleration Center

The initiative works in the Labor and Technological Development Department, it will develop and strengthen the capacities of the local enterprises, supporting the creation of innovative SMEs and promoting the start-up of new innovative activities in the existing SMEs.

Cites Innovation Center

Sancor Group promotes biotechnology, nanotechnology, engineering and other projects.

 

Wayra

Telefónica's accelerator, offers up to US $ 50,000 in financing for technology startups. In its six years of life in the country, it invested in more than 45 companies and reached global agreements with other accelerators and investment funds, generating accelerated companies to access international markets.

Question 8

List 5-10 successful startups developed by youth entrepreneurs under 30 years old based on the following structure:

Name of the founder

Industry

Aim of the startup

Products/Services

Link to start-up website (if any)

 

Renting - Online platform to rent an apartment.

Developers: Javier La Banca (CTO), Victoria Simón (CMO) and Mauro Ayala (CEO). Carlos Missirian was recently added as COO (former Technorides).

Business model: It is charged for the service in the closing of each operation. They also offer a monthly administration service.

Initial investment: US $ 200,000. 50% came from own capital and the rest from angel investors and NTXP Labs.

Billing (estimated 2017): US $ 100,000.

https://alquilando.com/

 

Clinc! - Creation of Apps for m-Commerce by using Big Data for user retention.

Developers: Sebastián Palatnik (CROO), Federico Homovc (CTO) and Tomás Mehdi (CIO).

Business model: The platform delivers a mobile point of sale. They created more than 1,000 stores that already transacted more than US $ 4 million.

Initial investment: US $ 350,000 (2016). In 2017, the acceleration of Parallel18 and NXTP Labs began.

Billing (estimated): More than $ 1,500,000.

https://www.clincshop.com/

 

Auravant - Precision farming.

The solution measures the amount of nitrogen needed to grow, based on climate data, soil and satellite photo variables.

Developers: Leandro Sabignoso (CEO), Nicolás Larrandart (CTO) and Leonardo Fernández (COO).

Business Model: Your first App, Plena, is delivered in a file ready to use in the fertilizer machinery of the producer.

Initial investment: US $ 50,000 (own capital).

Billing (estimated): US $ 115,000.

https://www.auravant.com/

 

3C Constructions

Development of an industrial process without using water and almost without the need for energy, to produce construction elements that allow to make high-quality housing solutions at a low price. They estimate that a finished house costs half that of traditional systems, using reused materials.

Developer: Lucas Recalde, together with 2 partners.

https://construcciones3c.com/

 

Biosánita

Developer: Pablo Kameniecki

He created the dry bath, which does not use water to evacuate the waste and can be installed in any area of medium or low urban density. Present already in 19 Argentine provinces, it aspires to link with entities of public good to bring sanitation to relegated communities.

https://www.biosanita.com.ar/?v=5b61a1b298a0

 

Biopintura

Developer: Guillermo Corbalán

From Tucumán, stood out with his white latex for wall friendly with the environment, from the process of manufacture, application and useful life. Ecological paint dispenses oil, so it is also recommended to apply in environments for people with health problems or allergies. His secret: the main input is a dairy residue.

http://www.biopinturasargentinas.com.ar/

 

Biosano

Developer: Martín Benito

It is a Mendoza company that produces 100% biodegradable products for the treatment of wastewater. It can be applied for the dehydration of sludge from the petroleum industry, the elimination of heavy mining metals or the treatment of industrial effluents.

http://biosano.com.ar/web/

 

Cereal bars nutri api

Students from an agrarian school in Carmen de Patagones, where many agricultural activities are cultivated and developed, decided to take advantage of the honey produced by the bees in their school to carry out a venture of cereal and honey bars of different flavors, including hazelnuts, almonds, walnuts and peanuts. Taking into account the importance of honey, which is the only natural food that is produced without destroying any form of life.

https://www.facebook.com/barritasnutriapi/

 

Work cooperative: hands of my neighborhood

It is a cement cooperative that carries out specialized construction activities. In their beginnings they constructed street tiles that soon would be sold to the public or to the different corralones. They also make 5 models of pots for plants. This cooperative is one of the productive poles of Carmen de Patagones, dependent on the Argentina Trabaja program of the Nation's Ministry of Social Development.

 

Question 9

What are the industries who have the biggest potential to develop? Or the ones that developed in an accelerated way?

Argentina is among the 10 countries with the greatest potential for the development of renewable energies. Among the most highly developed sectors, the following stand out: energy, infrastructure, agrobusiness, mining, oil and gas activities. Those industries derived from primary activity are those that accelerated the most and from which the highest percentage of added value is obtained.

The Ministry of Production, of which Dante Sica is in charged, is analyzing how the field will be the main driver of exports in 2019. In addition, they estimate that, thanks to the improvement in oil and gas production by Vaca Muerta, and the implementation of march of many renewable energy projects, in 2019 will increase the sales abroad of fuels and energy.

Gas and oil are energy items that evolved well in the middle of the recession and came to generate their own dynamics

A big winner in terms of progress is tourism. Specifically the receptive one, that with a cheap Argentine economy for foreign currency can show the biggest growth of the last years.

Genneia, a company dedicated to producing renewable energy with the wind. The country has conditions to produce clean energy with its winds, which are stable.

Wheat, a star in the world of agribusiness. Analysts agree that agribusiness will become the star of the economy in the hand of politics. Among them stand out devaluation and the elimination or lowering of retentions to the crops. In this context, wheat will be one of the biggest bets of producers. The cereal is planted in autumn-winter (May to July, depending on the areas) and harvested in December. It is a good option to plant soybeans once harvested.

Thanks to its climate and rains Argentina leads on lemon exports. Besides being the main producer of this citrus, is the leader in export of lemon juice. According to data from the Ministry of Agribusiness, 38% of the total hectares used for growing citrus correspond to lemon plants.

 

Question 10

Which are the top 3 cities who have an encouraging climate for entrepreneurs? Why?

According to the Economic Climate Index (ICE) for Latin America, Argentina integrates the ranking of the 11 Latin American countries with the best business climate.

The city of Buenos Aires leads the ranking, but there are also other areas where entrepreneurship has advantages. According to a report prepared by the Libertad Foundation and the Federal Network of Public Policies, behind the Federal Capital, the cities of San Luis, Comodoro Rivadavia, Salta and Río Grande appear with more benefits to create a new company.

On the contrary, in the last places, those that offer more obstacles are Formosa, Corrientes and Río Gallegos. Córdoba is ranked 7th and Rosario 9th.

The ranking - known as the Provincial Index of Business Performance (IPDE) - was made for the first time from the study of five key indicators that determine the level of obstacles and facilities for doing business in each jurisdiction: opening a company, obtaining permits of building, obtaining electricity, registration of properties and fiscal aspects.

La Plata has 6 thousand researchers in 29 research centers of CONICET and the Scientific Research Commission (CIC), 130 thousand university students enrolled in the four local universities (UNLP, UTN, UCALP and UDE) and 56 IT pole companies with more than 2 thousand employees in the sector. With the presence of major business references in the city such as Globant, Globalogic, Despegar and Mercado Libre; incubators, accelerators, co-working spaces and activities for entrepreneurs, the city is consolidated as one of the most attractive and mature ecosystems to undertake in Argentina.

Santa Fe province has the most suitable soils for the soybean harvest which allows large companies to export this cereal to different countries in the world. They have state-of-the-art technology, a lot of foreign investment that positions them in a key point for the country.

On the other hand, Córdoba has a high production of soils, a better interaction between the public and the private sector.

 

Question 11

List 3-5 projects/programmes initiated by non-profit organisations with the topic: social entrepreneurship and entrepreneurial education. 

Commitment

Commitment Foundation works with social organizations, public schools, health centers, companies and public bodies in programs and projects in which all these actors operate jointly. The objective is to improve life quality of the community concerning education, health, environment and employment, by development with social inclusion.

Ashoka

It has been promoting entrepreneurial culture and social innovation for more than 20 years. In Argentina, It began to select social entrepreneurs in 1994.

Today, there are 60 social entrepreneurs that make up the Argentine network. Together with their teams, and within the framework of their organizations, they are implementing innovative and effective solutions to advance in the overcoming of different social problems in the education, health, environment, employment generation, diversity, citizen participation and solidarity economy fields.

The entrepreneurs of Ashoka are outstanding change generators. However, they are convinced that we all need to become leaders of change. We all must have the opportunity to transform ourselves into fully developed human beings with an inclination to improve the world, live for the common good, progress and help others to progress. We must all exercise new empathy, teamwork, leadership and entrepreneurial skills.

CARITAS Argentina

With more than 32,000 volunteers throughout the country, it carries out programs and projects related to productive micro-enterprises and family self-consumption, comprehensive care centers, promotion of educational spaces, housing self-construction, health training, citizenship, trades and volunteering, promotion of integral health, tasks of prevention, intervention and reconstruction in climatic emergencies and work with people in street situation, among others.

EMPREAR

Is a non-profit, non-partisan and autonomous non-governmental organization (NGO) from Argentina. It was born after the 2001 crisis with the aim of spreading the entrepreneurial spirit of the nation and promoting the creative capacity of economic and social value of entrepreneurs and agents of more innovative change.

Contributing

Non-profit organization composed by a professional team committed to social and economic development for communities that contributes to generating a careful world.

It have been actively working since 2004 in partnership with companies, governments, international organizations and civil society actors. It promotes local development and entrepreneurial culture.