Why was changing the culture important?
As an accelerator we offer benefits to our startups such as equity free funding, soft landing and access to a co-working space, among others. In return we ask that our entrepreneurs are active in our social impact activities. Their involvement is a crucial factor in maintaining Chile’s entrepreneurial culture.
While the economic, political and legal environment of a country is known to influence entrepreneurship, it is the culture that ensures the availability of an adequate pool of entrepreneurially oriented individuals. You need to first change the culture so that all actors can sit and do business.
The Global Entrepreneurship Monitor
GEM is the world’s foremost study of entrepreneurship and a trusted resource for key international organisations like the United Nations, World Economic Forum, World Bank and the Organisation for Economic Co-operation and Development. In 2016, GEM ranked Chile 7/65 in Total Early Stage Entrepreneurial Activity (TEA) worldwide. Early-stage entrepreneurial activity is the means through which innovation occurs. Chile accounts for 50% of TEA in Latin America.
“A product or service that is new to some, if not all, consumers in a given market
in which few,or no, other businesses offer the same product”
Innovation according to GEM
Global Entrepreneurship and Development Institute
GEDI, is a policy development organisation dedicated to expanding economic opportunities for individuals, communities and nations. GEDI ranked Chile, 18th in the world for its entrepreneurial eco-system weighed against its domestic institutions and governance systems. The key strengths of the Chilean system are Opportunity Perception, Startup Skills, Risk Acceptance and Product Innovation.
“… a remarkable achievement, punching above its weight – in entrepreneurship,
an outcome we attribute to the country’s sound governance systems”
GEDI report about Chile
Social Impact at Start-Up Chile has evolved over the years, from RVA, to Social Impact to today’s Founders Lab. It is both a program to enhance the success of our entrepreneurs and it is also the methodology we use to make an impact in society. Through Founders Lab we stabilise a well-structured and healthy domestic entrepreneurial ecosystem.
The Founders Lab one of the ways that Start-Up Chile impacts the Chilean community. Start-Up Chile has changed their approach to social impact over the years, today the Founders Lab focuses on creating more impact with the correct audiences in each stage of development. Since 2015, The Founders Lab has operated events in regional areas of Chile through the Go Regional program.
The Founders Lab mission is to empower local entrepreneurs and boost the entrepreneurial ecosystem, so that Chile maintains its position as the leader in Latam. Results have shown that Chilean startups thrive due to their cultural proximity in the region, it is a mission of Founders Lab to further strengthen these connections.
Founders Lab is executed through a series of activities that invites serial entrepreneurs, alumni, mentors and academics to run workshops or events with the focus of promoting learning and providing tools for success. So far, SUP entrepreneurs organized more than 5000 social impact activities, with more than 300,000 attendees.
After participating in Founders Lab activities, results showed that 80% of startups were still operating. Startups that had clients/users before their participation in the program reported duplicating their portfolio after participation. 40% of startups with no existing clients reached an average of 500 clients/users and one out of three startups managed to secure capital.
Other social activities
In addition to Founders Lab activities, we run a number of events yearly to encourage engagement between our entrepreneurs and the broader industry. In 2016 we introduced Tech Evenings, a tailored monthly event toward specific industries such as, E-commerce, Logistics and Health.
CHILEANS IN START-UP CHILE
This pool of talented individuals increases the possibility for startup survival. Reported in 2016, 51.1% of startups that have participated are still active today. 55.4% of those surviving are Chilean.
Chilean startups tend to have broader networks, better connections and more opportunities to access public follow-on funds.
Start-Up Chile has welcomed 1,400 beneficiaries and their start-up teams to Chile since 2010. 76% of the total entrepreneurs are foreign and 24% are Chilean. However the past 3 generations of our largest cohort Seed have averaged 40% Chilean, highlighting an increasing amount of Chilean interest in the benefits of entrepreneurship. Chileans are now more prepared to compete with entrepreneurs on a global level due to the shift in culture.