Startups in Bolivia: An essential conversation for the future

A little over two decades ago, Santa Cruz was the scene of a milestone in the promotion of entrepreneurship in Bolivia. At CAINCO, and in collaboration with almost a dozen institutions, we organized the first competition for entrepreneurial ideas in the city. Among the winning proposals, the project of a business that brought typical products from the valleys of Santa Cruz and other provinces to the city of Santa Cruz stood out, reflecting the traditional character of most of the ventures of the time.

In those years, Bolivia was recognized in a study by the Global Entrepreneurship Monitor (GEM) as one of the countries with the highest rate of entrepreneurship. However, most of these ventures were out of necessity and followed traditional models. Since then, the panorama has changed radically. The entrepreneurial ecosystem in Bolivia has evolved significantly, promoting a new generation of ventures with great growth potential and that, taking advantage of technology, seek to solve real problems in society and companies. These ventures are the famous Startups, technology-based ventures with high growth and scalability potential, managed by teams that react quickly to changes and operate with an innovative or disruptive business model.

Entrepreneurs leading startups in Bolivia are distinguished by their agility, which allows them to quickly adapt to market changes and, in many cases, pivot their business model to better align with new realities. This ability to adapt is not just a characteristic, but a necessity in the dynamic and often volatile environment in which they operate.

Moreover, these entrepreneurs have a global vision from the start. Although many start by solving local problems, they always have in mind the possibility of scaling their solutions internationally. This ambition not only reflects their desire for growth, but also their understanding that technology allows them to break down geographical barriers.

It is essential to understand that a startup is not just an app or software; it is a new way of approaching and solving problems. Startups are at the heart of digital transformation, offering innovative solutions that improve people’s lives. From fintech applications that facilitate access to financial services, to platforms that promote the collaborative economy by connecting users and service providers, in the field of logistics, education, commerce, among others, startups are transforming the way we interact and do business.

Many of the startups are deeply committed to social innovation and, little by little, to solving climate problems as well. They are not only seeking economic success, but also have a strong focus on solving social problems, such as inclusion and job creation, or environmental issues such as improving agricultural productivity, using technology to generate a positive and lasting impact in their communities.

Startups need a regulatory environment that favors their development. This includes everything from simplifying bureaucratic procedures to creating policies that encourage innovation and investment in technology. An adequate regulatory framework can be the catalyst that allows startups to prosper and contribute significantly to the national economy.

Talking about startups is not just relevant; it is crucial for the future of the Bolivian economy. Startups are much more than new companies; they are drivers of innovation and economic growth due to their importance in the digital economy as a new source of exports and foreign currency for the country. This is why it is essential that all actors in the ecosystem work together, from the public sector, support entities to investors. It is everyone’s responsibility to create the necessary conditions so that they can innovate, grow and have a positive impact by contributing to the internationalization of the Bolivian economy.

Under this premise, and understanding that one of the critical aspects for the development of startups in Bolivia is access to financing, the realization of the Venture Capital & Impact Investment Latam Summit (VCILAT) is becoming crucial. This event, organized by CAINCO from August 21 to 23, brings together investment funds, angel investors and entrepreneurs from across the continent, becoming an essential platform to connect Bolivian startups with the capital and knowledge they need to grow. This event not only seeks to overcome the financing barrier, but also to boost Bolivia’s innovative entrepreneurship ecosystem, creating a more favorable environment for the emergence and development of new ventures supported by knowledge and technology.