On August 19 the second regional report  was released: GEM 2008 Antofagasta, Chile  Report. This report prepared by Gianni Romaní and Miguel Atienza, researchers at the Center for Entrepreneurship and SME of the Economics and Business Faculty - Universidad Catolica del Norte, shows the main results of entrepreneurial activity in that region, as well as attitudes and aspirations of individuals in each stage of the entrepreneurial process.

The main comments of the regional experts who contributed to the GEM Antofagasta-Chile report can be found on YouTube by clicking HERE. 

Gianni and Miguel

Regional Team Antofagasta, Chile.

Regional Report: GEM 2008 Antofagasta-Chile.

Executive Summary

•      In 2008, 15.9% of the adult population between 18 and 64 years old is involved in early-stage entrepreneurial activities.  This implies an increase compared to 2007 and places the Region of Antofagasta over the national average of 13%.

•      Among the Chilean regions participating in the Global Entrepreneurship Monitor (GEM) project, Antofagasta is the Region with the highest rate of new entrepreneurs (7.5% of the adult population); significantly above the national average (5%).  In contrast, it is one of the regions with the lowest rate of established entrepreneurs, 5.5% compared to 6.9% nationally.

•      Antofagasta stands out for being the region with the highest rate of entrepreneurship in the early stages per opportunity (13.7% of the adult population). The region also has the highest percentage of entrepreneurs per opportunity whose aim is to be independent.

•      The adult population of Antofagasta continues to perceive the Region as a place where there are good opportunities to start new business.  This positive perception exceeds that obtained in the country among new entrepreneurs and especially among established entrepreneurs.

•      Entrepreneurial initiatives continue to be focused on businesses oriented toward the final customer, with little growth potential and scarce innovation. However, efforts to incorporate new technologies in production processes and orientation toward exports have increased.

•      The positive perception of business opportunities in the Region is shared by the experts surveyed, but their evaluation of the entrepreneurial context is not favourable. Among the most critical dimensions of the entrepreneurial context, the experts point out the transfer of Research and Development, education and access to financing. Only the access to physical infrastructure has had a positive evaluation.

•      Despite the negative evaluation that the experts make of the local entrepreneurial context, an improvement is observed in their valuations compared to 2007, especially in the areas of education, social and cultural norms, and government programs. This improvement has resulted in the judgements of regional and national experts coming closer together.

•      The equity gap that entrepreneurs in the Region of Antofagasta suffer is 8.5% of their capital needs, significantly higher than the national gap of 3.9%.  New financing mechanisms need to be created so that entrepreneurs can carry out their business initiatives, especially in the area of non-traditional sources of financing.

•      The effort to create a more favourable entrepreneurial environment in the Region of Antofagasta must be oriented, on the one hand, to the formation of trained entrepreneurs who can take advantage of the opportunities that exist in the Region, taking on projects with a greater potential for growth and innovation, and, on the other hand, to taking on institutional changes that enable better transfer of Research and Development, access to more financing alternatives, the elimination of bureaucratic obstacles, and the adaptation of instruments of public support to local needs.