Chile
CHILE: A MARKET FOR South AmericaN ENTERPRENEURSHIP
Thanks to the initiative of the Management of Promotion of CORPO (a Chilean government agency) to collaborate with the business’ value increase of Chilean companies, we find the agency InnovaChile.
CORFO makes possible for Chilean companies to be more competitive by means of improving their productive, administrative and commercial procedure strengthening their entrepreneurial, investment and strategic alliances nets with Chilean and/or foreign companies.
InnovaChile, a model agency for entrepreneurship in South America is the main government agency in charge of boosting innovation and undertaking in all type of sectors of world and national market, as well as companies either consolidated or new entrepreneurial initiatives.
Even more, InnovaChile of CORPO offers various lines of support for those starting up an innovative enterprise or a new business, whether they are persons, just created companies or companies with experience in the market. Also, these enterprising people count on the Chilean government support to access nets of angel funding and/or to find a “business incubator” sponsor that hand them over the proper guide to successfully start up the entrepreneurial idea.
Entrepreneurs in Chile can have an essential role on innovation. An important part of innovation does not come from the Investigation and Development (I+D) divisions of large companies but from ideas of people watching the market and identifying new business opportunities, which result turns to be in many cases an innovative idea.
Innovation and entrepreneurship: a close relationship. There’s a strong bond between these two concepts, therefore they are usually mentioned together even though they are different.
Entrepreneurship refers to the action by which new businesses are started, whereas innovation is the implementation of novelties or significant improvement.
So, entrepreneurship not necessarily means innovation (when, for example, a company is created to do the same as another one already created), likewise an innovation not necessarily requires entrepreneurship to be implemented (when, for example, an improvement in an existing company is implemented).
When both processes coincide creating a new business based on innovation, it is referred as innovative entrepreneurship.
Innovation creates high growth. Innovative start ups are usually more complex than those not based on innovation as they shall face, along with the tasks of starting up a business, those difficulties related to introducing something new into the market.
Nevertheless, the expansion in production and sales levels and the consequent growth of a new business is usually higher when the activity being started up is based on innovation.
In regards to support to entrepreneurship, we find some support lines as follows:
- Development of Human Capital Technical Skills in relevant sectors:
Subsidy supporting the design and Training Programs Pilot Plan addressed to lower training gaps detected in technicians and professionals belonging to sectors set as priorities by the regional councils in the frame of the Regional FIC budget assignation. - Attraction of Professionals and Technicians to enroll them in innovation projects in the industry:
Subsidy supporting the implementation and development of investigation and development processes in the companies by joining professional and qualified technical staff for investigation, development and/or innovation. - Tributary Incentive to Investment on Investigation and Development:
Tributary incentive for taxpayers subjected to first category tax of the Law of Income Tax. These taxpayers will have the right to a tributary credit in the exercises related to cash payments pursuant Investigation and Development Contracts executed with entities included in the Registry of Centers of Investigation being run by CORFO. - External Market Research and Investigation:
It is a subsidy supporting the development of market research and investigation that may lead Chilean companies to advances on product differentiation and its insertion in marketing channels. - Business Platform for Innovation:
It is a subsidy to support the design of business platforms for innovation defined as an entrepreneurial specialized unit to deliver services to exportation companies belonging to a sector or cluster that may lead them to get a position in segments of international markets. - Pre competitive Innovation:
Subsidy oriented to fulfill the demand of innovative solutions with high sectorial, geographic or regional impact through investigation development applied with important degrees of uncertainty and with impact in the medium or long term market. The specific goals of this line may change from one contest to another. - Individual Entrepreneurial Innovation:
Subsidy supporting projects addressed to create innovation of assets, services, processes, marketing or organizational methods and, also involving higher risk. - Technological Missions:
Subsidy supporting trips abroad to access and later on disclose, transfer and adapt knowledge, practices and production techniques in Chile that make the development of innovation easier. - Seed Capital: Support to Start Up
Subsidy supporting the start up of innovative business projects with high growth expectations. - Business Incubators: Creation
Subsidy supporting the creation of business incubators; entities dedicated to strategic, technical and administratively orient entrepreneurs with innovative projects. - Operation of Business Incubators:
Subsidy supporting operation projects of running Business Incubators. The present bases have as a purpose to replace the line of Business Incubators Strengthening. - Angel Funding Nets
It is a subsidy supporting the organization, formalization and operation of investment nets headed to financing innovation projects presenting high risk or uncertainty with little possibilities to get some other sources of private financing.
In response to the initiative of InnovaChile, Roe Smithson & Asociados Ltda offers the Chilean entrepreneurs and businessmen its professional experience and practical knowledge to carry out studies on qualitative and quantitative market.
The Roe Smithson & Asociados Ltda professional team marks the difference, and its entrepreneurial experience will make the contractual and human relationship with the final client much more profitable, either it is an entrepreneur or a businessman with years
of experience.
WE INVITE YOU TO CONTACT US! – Roe Smithson & Asociados can provide companies with marketing research techniques such as Market Analysis & Market Segmentation or other services to investigate and get an understanding of the foreign market. The understanding of the foreign market is the key factor for achieving maximum revenue of the foreign investment.
