According to a study by The Economistthe assessment made of the ecosystem of the private equity and of the venture capital is in Latam has shown significant improvements, with local regulation having improved the investment climate.
Both small and large countries have improved their capacity to develop their domestic private equityThe EU has made progress in transparency and legal development, and in creating better conditions for local entrepreneurs. All countries have improved, even those with the lowest scores have remained stable. Mexico and Colombia are now very close to the two leaders: Chile and Brazil.
The improvement has come hand in hand with the adoption of international accounting standards by unlisted companies. The country leads the region in intellectual property protection, judicial transparency and perceptions of corruption.
"Chile has a score of 76, the same as Spain for example. The Chilean government is making an effort to help SMEs and start-ups with the aim of encouraging entrepreneurship (start-up Chile) and becoming the centre of operations for innovative companies that want to have a presence throughout Latin America. There are several funds and accelerators with which Spanish companies are reaching agreements for their international expansion" says Diego Gutierrez, an expert in international finance at ABRA INVEST.
Despite the overall good news from the region, Argentina continues to worsen in both its macro performance and its approach to investors. With no change in the score, Argentina ranks near the bottom, close to the Dominican Republic. "Another piece of good news for the entrepreneurial landscape is the establishment of the first seed fund in the Dominican Republic created by the Interamerican Development Bank. Fund managers' interest in finding small opportunities is growing, especially in Central America and the Caribbean," says Diego Gutierrez.
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