Entrepreneurship and Innovation are Thriving - and Driving - Forces in Latin America, Finds New Ernst & Young Report

CARTAGENA, Colombia, April 6 /PRNewswire/ -- Ernst & Young released a new white paper on entrepreneurship in Latin America today, during the World Economic Forum on Latin America.  James S. Turley, Global Chairman and CEO, Ernst & Young, is co-chair of the event.

The white paper, Entrepreneurship and innovation: the path to growth in Latin America, found that entrepreneurs are an especially powerful and growing force in regional business.  In particular, Colombia, Peru and Chile have some of the top rates of high-growth-potential entrepreneurs in the world.  Drawing on academic research, leading business minds in the area and real-world experience, the report explores the strides Latin America has made and continues to make with respect to innovation.  The full report can be downloaded at http://www.ey.com.

"In tough economic times, entrepreneurship and innovation are more important than ever, especially in Latin America," said Turley. "In some respects, it's the best time to launch or grow a business in the region.  These new businesses will further cement Latin America's status as a significant source of growth in the global economy."

Latin America emerged relatively unscathed from the recent economic crash, despite the collapse of so many commodity prices and the global credit freeze. Part of this performance was a reflection of Latin America's newfound sophistication, gained from its experiences over the past 15 to 20 years. Trade relationships have diversified as well, and now include most of the world, particularly China.

The region's performance during the economic crisis, with just a few exceptions, marked a coming of age, nearly as much as it did for Asia. Increasingly, this market of 550 million is getting the respectful attention it deserves.  One in particular – Brazil – is increasingly seen as a power in its own right.

To create more high-growth entrepreneurs, however, reforms are needed in many markets that tackle not only regulation and taxation, but reinvention of financial support systems for entrepreneurs that don't create long-term dependency.  Among these recommended reforms:

• Provide less government money
• Consider simplified and more effective regulation
• Publicize entrepreneurial role models
• Create deeper "ecosystems," allowing companies a greater ability to subcontract various parts of the business
• Encourage women entrepreneurs

The white paper includes an in-depth Q&A with noted economist and author C. Fred Bergsten, Director of the Peterson Institute for International Economics, as well as interviews with other exceptional entrepreneurs in the region.

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This news release has been issued by Ernst & Young LLP and Ernst & Young Audit Ltda., member firms of Ernst & Young Global Limited that provide services to clients in the US and Colombia, respectively.

SOURCE Ernst & Young