The government in the Argentine capital of Buenos Aires is preparing to unveil a plan to aide local start-up accelerators in support of young and innovative enterprises. According to reports in the local press, the government has set aside $2.25 million USD to finance about five accelerators.
In an interview with web portal Pulso Social, Mariano Mayer, General Manager of Entrepreneurs of the Government of the City of Buenos Aires, stated that the government’s support stems from its belief that innovation can drive growth in the local technology industry.
“We have a spectacular opportunity, and it is our responsibility to seize it with the seriousness it deserves, incorporating it as a state policy,” Mayer said.
The government is also reportedly planning to alter education policy in order to support young entrepreneurs and it will spend another million dollars under a program called Buenos Aires Emprende to build infrastructure for the industry that is capable of generating thousands of jobs in the South American country.
Lack of talent, training and finance are the major hurdles facing the start-up community, Mayer said, adding that the government was working on a strategy to create what he called an “entrepreneurial ecosystem.”
Analysts say that small and medium-sized businesses are the most important job creators in the region, and helping them to grow up and expand across the region will significantly benefit Argentina’s economy.
Buenos Aires was home to a lot of venture capital funds, but many disappeared when the recession hit five years ago. Mayer said there are now plans under consideration to launch venture capital funds locally.
Argentina’s economy is in trouble these days due to its unstable currency and rising inflation, which independent analysts estimate is well over 30%.