SANTIAGO – Chile is the most startup-friendly country in Latin-America, according to a report from StartupBlink. The country has overtaken the spot of Mexico. A main reason for Chile’s success is the “Startup Chile” program, that has served as a global example for accelerators.
StartupBlink released their report this month and Chile is found back on the 30th spot, described as “the new hot ecosystem in Latin America”. The report, that measures the quantity and quality of startups and the overall business environment, reviews countries and cities from all over the world.
According to the report, “Chile has done very well fostering startup innovations, one of which is the “Startup Chile” program, giving entrepreneurs around the world generous support if they attend a few months at an accelerator in Santiago.”
The capital of Santiago is ranked in the top 100 of world’s most startup-friendly cities, although the country dropped six spots and is currently found back on the 59th spot. Viña del Mar and Valparaíso are named in the top 500 list, on the 351st and 412th spot. The report names the diversification of its startup-friendly ecosystem in other cities and the solidification of Santiago’s status as a global and regional startup hub the next step to grow further.
The Best Country, Not the Best City
Although Chile is the country to be for startups in Latin-America, Santiago sees four other Latin-American cities ranked higher: São Paulo (23rd), Mexico City (47th), Buenos Aires (48th), and Bogotá (52nd) all perform better according to the report.
Former Latin leader Mexico is now ranked 32nd, while Colombia takes the third place with the 34th spot. Brazil and Argentina are on the 37th and 44th spot, and the report states they both “continue to underperform, considering the scope of their potential”.
Start-Up Chile’s Success
The success of Chile depends mainly on its biggest public startup accelerator: Start-Up Chile (SUP). The government owned program has been awarded internationally and recently the magazine Forbes wrote that the world-leading program “has transformed entrepreneurship in its native country and throughout Latin America. Its influence extends globally, and it has spurred a new class of public accelerator programs around the world.”
The program was developed in 2010 by government agency Corfo to develop Santiago and Chile as an entrepreneurial hub within the continent. Ever since, according to its own data, SUP has helped over 1,500 businesses from over 80 countries.
A Long Way to Go For Startup Hub Chile
Despite the success of Start-Up Chile, there is still a long way to go for Chile if they are to compete with the world leading countries. The report writes that especially the United States, the United Kingdom, Canada and Israel “seem to form a league of their own in the startup world, maintaining their standings and huge score gap in relation to other countries”.
Editor-In-Chief Boris van der Spek is the founder of Chile Today.