Ecuador

Region: LatAm and Caribbean
 

Classification of economies by geographic region is based on that of the United Nations Statistics Division.

Middle Income
 

Based on the income levels set out by the World Economic Forum (WEF) in its Global Competitiveness Report. However, the groupings are slightly different due to the numbers of economies covered. For GEM, the low income group contains both those classified as low income and lower middle by WEF, and the middle income group has those that WEF groups as upper middle. High income is the same for both GEM and WEF.

Population: 16.7 million (2018)
 

Population data is from the World Bank, except Palestinian Territories World Population Review and Taiwan Worldometers

GDP Growth: 1.1% (2018)
 

GDP growth data is from the World Economic Outlook Database, except Palestinian Territories Worldometers

GDP Per Capita: $6,217 (2017)
 

GDP per capita data is from the World Economic Outlook Database, except Palestinian Territories Worldometers

Entrepreneurial Behaviour and Attitudes

Most recent data: 2017
  • Ecuador 2017
  • Ecuador 2016
  • Global Average
  • Regional Average
  • Income Level Average

Self-Perceptions

  • 1
     
    Perceived Opportunities Rate:Percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who see good opportunities to start a firm in the area where they live
  • 2
     
    Perceived Capabilities Rate:Percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who believe they have the required skills and knowledge to start a business
  • 3
     
    Fear of Failure Rate*:Percentage of the 18–64 population who agree that they see good opportunities but would not start a business for fear it might fail. NOTE: this is a percentage of those seeing good opportunities, and not the total adult population
  • 4
     
    Entrepreneurial Intentions Rate:Percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who are latent entrepreneurs and who intend to start a business within three years
  • 1. Perceived Opportunities Rate
  • 2. Perceived Capabilities Rate
  • 3. Fear of Failure Rate*
  • 4. Entrepreneurial Intentations Rate:

Activity

  • 1
     
    Total early-stage Entrepreneurial Activity (TEA):Percentage of 18-64 population who are either a nascent entrepreneur or owner-manager of a new business
  • 2
     
    Established Business Ownership Rate:Percentage of 18-64 population who are currently an owner-manager of an established business, i.e., owning and managing a running business that has paid salaries, wages, or any other payments to the owners for more than 42 months
  • 3
     
    Entrepreneurial Employee Activity Rate:Rate of involvement of employees in entrepreneurial activities, such as developing or launching new goods or services, or setting up a new business unit, a new establishment or subsidiary
  • 1. Total early-stage Entrepreneurial Activity (TEA)
  • 2. Established Business Ownership Rate
  • 3. Entrepreneurial Employee Activity Rate

Motivations

  • 1
     
    Motivational Index:Percentage of those involved in TEA that are improvement-driven opportunity motivated, divided by the percentage of TEA that is necessity-motivated
  • 1. Motivational Index

Gender Equity

  • 1
     
    Female/Male TEA Ratio:Percentage of female 18-64 population who are either a nascent entrepreneur or owner-manager of a 'new business', divided by the equivalent percentage for their male counterparts
  • 2
     
    Female/Male Opportunity-Driven TEA Ratio:Percentage of those females involved in TEA who (i) claim to be driven by opportunity as opposed to finding no other option for work; and (ii) who indicate the main driver for being involved in this opportunity is being independent or increasing their income, rather than just maintaining their income, divided by the equivalent percentage for their male counterparts
  • 1. Female/Male TEA Ratio
  • 2. Female/Male Opportunity-Driven TEA Ratio

Impact

  • 1
     
    High Job Creation Expectation Rate:Percentage of those involved in TEA who expect to create 6 or more jobs in 5 years
  • 2
     
    Innovation Rate:Percentage of those involved in TEA who indicate that their product or service is new to at least some customers AND that few/no businesses offer the same product
  • 3
     
    Business Services Sector Rate:Percentage of those involved in TEA in the 'Business Services' sector - Information and Communication, Financial Intermediation and Real Estate, Professional Services or Administrative Services, as defined by the ISIC 4.0 Business Type Codebook
  • 1. High Job Creation Expectation Rate
  • 2. Innovation Rate
  • 3. Business Services Sector Rate

Societal Values

  • 1
     
    High Status to Successful Entrepreneurs Rate:Percentage of 18-64 population who agree with the statement that in their country, successful entrepreneurs receive high status
  • 2
     
    Entrepreneurship as a Good Career Choice Rate:Percentage of 18-64 population who agree with the statement that in their country, most people consider starting a business as a desirable career choice
  • 1. High Status to Successful Entrepreneurs Rate
  • 2. Entrepreneurship as a Good Career Choice Rate

Entrepreneurial Framework Conditions

Most recent data: 2017

Expert Ratings: 1 = highly insufficient, 5 = highly sufficient

  • Ecuador 2017
  • Ecuador 2016
  • Regional Average
  • Income Level Average
  • Global Average
  • Ecuador 2017
  • Ecuador 2016
  • Regional Average
  • Income Level Average
  • Global Average

Stimulating Innovation

 

Entrepreneurial Ecosystem

 

Among efficiency-driven countries, Ecuador has one of the highest percentages of adults involved in new entrepreneurial activities in the world (33.6% of all adults between the ages of 18 and 64 years of age). One in three adults in the country are starting up or running a business no older than 42 months – a rate which has remained fairly stable over the last three years. 

 

Nevertheless, the percentage of adults that start a business out of opportunity is below the average for efficiency-driven economies and countries in the Latin America and Caribbean region. In 2015, on average, twice as many entrepreneurs in efficiency-driven economies said they were motivated to start a business to pursue an opportunity rather than out of necessity. In Ecuador only 1.1 times as many said they started a business out of opportunity. 

Government policies are considered the biggest constraint on entrepreneurship. There is a need for integrated policies that promote entrepreneurial activity, in particular to support businesses that are innovative and have the potential to grow. 

However, during the past year several changes in the entrepreneurial ecosystem have taken place. Since 2014, the number of entrepreneurs offering new products or services has doubled, while the number of nascent and new businesses that use innovative technology has also increased. 

Also, a number of events and organisations have taken root in Ecuador to help develop innovative business ideas. Entrepreneurial communities, hosting pitch nights and meetups, and events such as Startup Weekend, Lean Startup Machine and MIT's Emerging Technologies Conference have all sprung up in recent years. 

As the country’s entrepreneurial capacity has improved, several co-working spaces, incubators, accelerators and angel investors come to the fore, which has led to the emergence of new funding initiatives such as Startup Ventures and Angeles EC and new government programmes such as Banco de Ideas. 

 

 

 

Banco de Ideas 

 

Seeking to foster innovative businesses, the Secretary of Higher Education, Science, Technology (SENESCYT) launched the Banco de Ideas programme in July 2014. 

 

The programme consists of an online platform where entrepreneurs can register their ideas that are then adjudicated by a panel. Entrepreneurs with those ideas judged to be the best can get seed funding as well as business support from SENESCYT’s network of 16 incubators. Various rounds are held in the year to select ideas. 

To receive support, projects must be considered innovative (by introducing a new product or service that does not exist in the market), have export potential, or be applicable to the productive sector. 

During each round a number of finalists are chosen. Their ideas are then evaluated further by national and international market experts, before a number are selected to receive seed funding as well as business support from incubators.

 

Impact 

 

By the end of 2015, the platform had more than 13,000 registered users and more than 5,000 ideas. In all, over 260 projects had received technical assistance and 40 of these had received more than $1.85 million in seed capital. 

 

Winning projects have come from diverse fields such as Java2Ginga, a digital TV platform; Fayac, an educational spherical puzzle; and Seimo, a project to enable mechanical and electronic adaptations to cars for people with disabilities.  

 

Ecuador Reports

Name
Report information
pdf
  • Year of publication: 2019
  • Category: National Reports
  • Language: Spanish
  • Upload date: 2019-11-21

  • Uno de los principales desafíos que enfrenta la mayoría de los países del mundo es el desempleo juvenil. Ecuador no es la excepción: alrededor de 200 mil personas de entre 18 y 34 años estarían desempleadas, con otras 500 mil en el subempleo. El fomento del emprendimiento de jóvenes se considera como una estrategia crítica para poder integrarlos en el mercado laboral, aprovechando al máximo su potencial de contribuir significativamente al desarrollo económico. Según datos del GEM Ecuador 2012-2017 para la población de personas de 18 a 34 años, la tasa de Actividad Emprendedora Temprana (TEA) de los jóvenes muestra una tendencia decreciente, luego de un repunte en 2013. No obstante, estas cifras son las más altas entre los países participantes de América Latina y El Caribe. Cada año, un promedio de 32% de la población de 18 a 34 años estaría involucrada en la puesta en marcha de un negocio, o posee uno que ha estado en funcionamiento por 42 meses o menos. Se observan diferencias significativas entre los grupos de 18 a 24, y 25 a 34 años, siendo este último el que registra la mayor actividad. Dentro del reporte se exploran las características, motivaciones y aspiraciones de estos emprendedores. A pesar de pertenecer al país de mayor TEA en la región, y de estar más familiarizados con las tecnologías de información y comunicación, los jóvenes en Ecuador se relacionan comparativamente menos con otros emprendedores. Esto podría afectar el alcance de sus negocios, tanto potenciales como en funcionamiento. Aquí, hay una oportunidad valiosa para que los agentes públicos, gremios empresariales y otras organizaciones fomenten la construcción y el desarrollo de redes empresariales.
  • URL: http://gem-consortium.ns-client.xyz/report/50408
 Jóvenes emprendedores en Ecuador 2012 - 2017
Report information
pdf
  • Year of publication: 2018
  • Category: National Reports
  • Language: Spanish
  • Upload date: 2018-08-20

  • This report provides a comprehensive and detailed account of entrepreneurship in Ecuador, based on a sample of 2060 adults and 37 national experts. In 2017, around 3 million of Ecuadorians were estimated to be starting or running a new business, based on the Global Entrepreneurship Monitor´s Total Entrepreneurial Activity (TEA) rate of 29.6%, being the highest of Latin America for 6 consecutive years, followed by Peru and Chile; nevertheless, it has gradually decreased since 2013. The difficulties to overcome the threshold of 3 months of operation persist; the main issues are financing and low profitability.
  • URL: http://gem-consortium.ns-client.xyz/report/50078
 GEM Ecuador 2017 Report
Report information
pdf
  • Year of publication: 2017
  • Category: National Reports
  • Language: Spanish
  • Upload date: 2017-06-27

  • En el 2016, el Índice de Actividad Emprendedora Temprana (TEA) para Ecuador fue de 31.8% siendo 2.2 veces mayor al promedio de las economías de eficiencia. Esto representa una ligera disminución en la actividad emprendedora en comparación al 2015, donde la TEA de Ecuador se ubicó en 33.6%. Pese a esto, Ecuador sigue siendo el país con la TEA más alta en la región, y el segundo entre los 66 países participantes.
  • URL: http://gem-consortium.ns-client.xyz/report/49844
 GEM Ecuador 2016 Report
Report information
pdf
  • Year of publication: 2016
  • Category: National Reports
  • Language: Spanish
  • Upload date: 2016-08-10

  • En el 2015 se obtuvo un Índice de Actividad Emprendedora Temprana (TEA) de 33.6%, esta cifra no ha presentado variaciones importantes en los últimos años. Al poner en contexto la realidad del emprendimiento Ecuatoriano con el resto de economías de eficiencia, se puede observar que la TEA en Ecuador es 2.2 veces superior que el promedio para estas economías.
  • URL: http://gem-consortium.ns-client.xyz/report/49563
 GEM Ecuador 2015 Report
Report information
pdf
  • Year of publication: 2015
  • Category: National Reports
  • Language: Spanish
  • Upload date: 2015-09-22

  • The Total Early-Stage Entrepreneurial Activity (TEA) in Ecuador decreased in 2014 to 32.6% from a peak of 36% in 2013. However, Ecuador remains as the Latin American country with the highest TEA, followed by Peru (28.8%) and Chile (26.8%). It also has the highest TEA among the efficiency-based economies.
  • URL: http://gem-consortium.ns-client.xyz/report/49224
 GEM Ecuador 2014 Report
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