Basic dimensions of the entrepreneurial ecosystem
Adequate environment for innovation, spaces for interaction, timely financing, and adaptation of working capacities favor the creation of companies.
The entrepreneurial ecosystem promotes the creation of more and better companies, facilitates the transition of workers toward the formal productive sector, and seeks to favor the creation of companies through four dimensions:
- Provide an adequate environment for innovation
- Generate spaces for interaction between individuals with complementary talents
- Offer adequate and timely financing for each growth stage of an entrepreneurial initiative
- Promote de adaptation of the capacities of the labor force to the needs of companies
A system that promotes entrepreneurship and productivity contributes to correct market imperfections that generate low levels of innovation both in products and processes, helps find and develop the combination of talents for entrepreneurship, and addresses the imperfections in capital and labor markets, according to the Economy and Development Report (RED, for its acronym in Spanish) which dedicated it edition to "Entrepreneurships in Latin America. From subsistence toward productive transformation".
In Latin America, the four dimensions show weaknesses, and although it is necessary to address all of them, it is essential to address the basic failures of the financial markets and the depreciation of the capacities for work in the work force which is busy in the informal sector of the economy, as they condition the creation of new companies and the growth possibilities of the existing ones.
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