Anywhere in the world, starting a business requires determination and a good business idea, but in some countries it is easier to start new businesses. A publication was recently published US News and World Report ranked the best countries for entrepreneurs based on a number of factors such as connectivity to the rest of the world, availability of skilled labor, strong infrastructure, a well-developed legal framework and easy access to capital.

The same publication shows that in developed countries, such as Germany, the United States, Japan and the United Kingdom, 60% of these ventures become companies that can sustain economic growth and create local jobs to contribute to financial development. These companies receive some benefits such as VAT reduction at different periods of the business growth cycle to encourage their development.

Another relevant fact is that close to 18% of these companies are able to expand their operations to the rest of the European community in the case of Germany, for example, or to countries with which they have contracts of a commercial nature. This implies that these countries will be able to generate income from the export of either goods or services, which, regardless of the central state, will in more than 80% of cases be refined products or specialized services. Another percentage of companies sell their ideas and products to become part of multinational companies that have a financial, economic and labor impact around the world.

(…) in developed countries… 60% of these ventures become companies that can sustain growth…

Both the world economy and the progress of technology, science and the labor market are globalized, and an example of this is that Ecuador continues to sell its raw materials to foreign companies that exploit them and sell us industrialized products with a higher value than they should cost. if they are produced locally. Ecuador seems to understand by private investment the sale of oil fields, the sale of resources for energy production, and the sale of all raw materials to be refined by foreign industry on domestic soil. In a certain way, this allows for easy growth by injecting funds into the state and creating a certain percentage of work for the communities.

However, various economic studies from various universities show that the real financial growth of the country lies in the fact that its own companies are the ones that export products after they have been distributed in the local market. Ecuador has a large number of public companies, which are a headache for the state, and in many cases they want to be sold or privatized. I wonder why not apply the criteria of innovation and development in them to make them productive?

Local development and modernization are the axis of true growth of the country’s GDP, which must stop depending on international conditions affecting the local economy. For example, among others, the drop in the price of a barrel of crude oil. (OR)