Incentivizing Colombian startups: the real 'reform' / Multimedia Editor's Analysis

While the country is engaged in heated debate over labor reform and the referendum, supposedly "for the benefit of workers," there is a perhaps more urgent conversation with the potential for long-term impact: how can we incentivize more digital entrepreneurs and startups?

These technology-based startups not only represent the future of our economy, but are already a tangible engine of employment.

The 'Colombia Tech Report 2024', prepared by KPMG with the support of Andi, Cesa, Uninorte, EAFIT, EIA, Ruta N, Innpulsa, and the Chambers of Commerce of Bogotá, Cali, Barranquilla, and Bucaramanga, revealed very encouraging data: there are 2,700 registered startups in our country, 24 percent more than in 2023.

Nineteen percent are fintech (financial services); 11 percent are software as a service (SaaS); 7 percent are health-tech, as well as ed-tech (education); in addition to several in energy, real estate, human resources, legal, and other services.

But what is the real impact of these companies? The answer is resounding: employment and the democratization of wealth. Startups are not just innovative ideas; they are concrete sources of formal, quality employment. The report indicates that, on average, a startup employs 11.8 people, potentially more than 29,000 jobs, which are also typically associated with competitive salaries.

The same report reveals that the identified high-impact startups have raised nearly $1.5 billion in investment rounds.

However, the path of an entrepreneur is fraught with challenges. Survival is a constant struggle: access to financing remains the number one challenge. High tax burdens, trade restrictions, and outdated regulations are complex barriers.

What would happen if access to capital were simple? What if there were effective tax incentives for investment? What if the regulatory labyrinth were simplified?

Strongly supporting entrepreneurs and startups is not only a smart economic policy; it's a direct, high-impact commitment to employment and sustainable growth.