About 56 percent of the population believe that there is not enough support and focus on entrepreneurship in universities to promote new businesses, according to a study by the Association of Entrepreneurs of Colombia (ASEC) published in Dinero.
Many people aren’t aware of how to start a new business, as documents about legal regulations are difficult to understand.
The study also explains that there’s a lack of government support. Only 16 percent of people believe that support entities are sufficient, and 20 percent believe the government helps new and growing companies. Just 3 percent of companies state they use available public resources, 3 percent angel investors, and 0.5 percent venture capital.
And while those in Colombia are two times more likely to start a business, they’re six times less likely to develop companies with 50 or more employees.
Despite Colombia possessing a number of MBA university programs, such as EAFIT in Medellin, and Pontificia Universidad Javeriana in Bogota, some educational institutions are behind in promoting entrepreneurship.
A report published earlier this year outlined three main areas as tools for successful entrepreneurial programs for universities; creativity, project management and team building, and business basics.
In Latin America, family-owned businesses contribute to 80% of private sector activity, and represent 85% of companies as well as 60% of GDP. However, these are established businesses that have been passed from parent to child through generations.
The cost of starting a business in Colombia can cost as much as 75,000 COP and can take at least 2 and a half weeks, whilst this may not seem like much, there are other hurdles SMB owners have to overcome once business is up and running. Earlier this year, the government unveiled its tax policy. The move proved unpopular, particularly for owners of small businesses.
However with more than half of those surveyed holding the belief that universities need to do more to encourage entrepreneurship in the country, the seeds have been sown for growth in the sector.
