Political Risk Latin America Blog @PolRiskLatam

Financial Times looks at Argentinean investment culture, spotlighting Endeavor Entrepreneurs

Posted in News and Articles, Political Risk by politicalrisklatam on June 7, 2011

published by Endeavor, June 6th, 2011.

The Financial Times, in a recent article, “Argentina has talent but a lack of investment cash,” discussed Argentina’s investment environment, the opportunities available to enterprising entrepreneurs, and the challenges in starting a new company.

According to the article, while Argentina has impressive talent, innovative thinkers, and an educated, relatively inexpensive workforce, access to start-up capital is difficult to come by. A lack of faith in the banking system and a historically unstable currency has resulted in a small stock market and limited trust in banks.

Endeavor Entrepreneur Jessica Trosman and other business owners note that while it’s not impossible to come by cash in Argentina, it’s more difficult to find investors who add value to the company. As a result, they often turn to international funding sources, which in turn creates other challenges.

“‘What hit me worst here was the crisis of 2009. Mine is a very international brand,’ [Trosman] says, sitting in the flagship store in an upmarket Buenos Aires shopping centre where once 60 per cent of her customers were tourists. Now it is 20 per cent. ‘I got to the stage when I couldn’t stand it any longer. I could keep things going, but I wanted to be able to focus on what I want to do,’ she says. That includes growing her brand abroad (she still oversees international strategy).”

Another Endeavor company, Globant, also looked internationally to grow its business. (continue reading… )

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