Guatemala Stands Out Among the Best Countries for Entrepreneurship
Guatemala has positioned itself as one of the leading countries for starting businesses, achieving second place among 45 nations evaluated by the Global Entrepreneurship Monitor 2023-2024 (GEM). This ranking highlights the country’s remarkable progress, as it held the 13th position out of 70 countries analyzed in 2013.
The GEM study examines entrepreneurial activity, focusing on productive, institutional, and cultural factors. In Guatemala, this assessment is conducted by the Kirzner Entrepreneurship Center at Francisco Marroquín University (UFM).
Guatemala leads in early-stage entrepreneurship rates (32.4%), potential entrepreneurship (46.4%), and established businesses (13.2%), surpassing other Latin American countries. Additionally, the Guatemalan population demonstrates a positive attitude toward entrepreneurship, viewing it as a viable option for generating income. Compared to other countries in the region, Guatemala also stands out for its low fear of failure as an obstacle to entrepreneurship.
By gender, 55% of entrepreneurs are men, while 45% are women. Among them, 28.8% have launched a business in the last 42 months, making Guatemala the third country with the highest rate of female entrepreneurship in Latin America, behind Chile and Ecuador.
Regarding seed capital, 55.9% of startups begin with less than USD 1,294.46. Moreover, 70% of new businesses start informally, but after 3.5 years, 42% formalize their commercial activities. UFM also highlights that more than 80% of entrepreneurs expect to create new jobs in the next five years.
Paul Rodríguez
paul.rodriguez@garciabodan.com
Senior Associate
García & Bodán
Guatemala