The President of the Senate promised to promote a Law of Startups to encourage entrepreneurship in the digital economy.
The OECD calculates the existence of 2K startups in Latin America. The majority are in Brazil, Mexico, Colombia, Chile, and Argentina. The arrival of global investors has boosted the sector in the region, increasing the amount of investment to triple digits since 2017.
Bolivia is far from taking advantage of that boom. The Andean country does not have official figures, but according to the startupranking.com page, there are only 24 startups. However, initiatives to improve the ecosystem of the digital economy are being promoted. Last month, the first version of Digit Latam was held in La Paz and Santa Cruz, while the President of the Senate promised to develop a new law to support startups.
Three key points for a Bolivian law of startups
The law of startups, as it begins to be called in the Bolivian media, was a compromise established by the President of the Senate, Adriana Salvatierra. The content of this law is still unknown, but analysts in Bolivia believe that such legislation should consider three central points:
Regulatory framework: The bill should set clear rules for opening and closing startups, as well as incorporate quick bankruptcy procedures that encourage the risk of proposing an innovative business model. Changes to the Migration Law are also advised to promote the arrival of angels investors. Finally, the regulatory framework should consider measures of positive discrimination.
Funds and financing: Bolivia can follow the example of financing initiatives for startups such as Startup Chile, Startup Peru or Innpulsa Colombia. It also needs a change of legal regime to facilitate the entry into the country of foreign investment funds.
Incubators and accelerators. Finally, analysts propose that the country promote the creation of incubators, accelerators and university startups for the training of entrepreneurs. This policy should go with the promotion of tech research.
An adequate startups law can help Bolivia to accelerate the development of its digital economy, in addition to promoting inclusion and greater access to digital services. Also, with the proliferation of startups, the country will see jobs creation, an increase in tax collection and technological development.