Post on 22-Oct-2018
Panama’s Entrepreneurial Ecosystem
March 2017
About the Research
According to the World Bank Doing Business 2017 Index, about the ease of doing businesses, Panama is in the 90th place out of 190
countries¹. According to the National Report 2016 about “Entrepreneurship in Panama” by the Global Entrepreneurship Monitor (GEM),
the Entrepreneurial Activity in the country went from 20% in 2013 to 12% in 2015. A positive aspect is that there was a growth in
ventures created by opportunity (46%) and not for need or subsistence (0.9%) ².
For this reason, the Regional Chapter for Central America and Mexico of the Aspen Network of Development Entrepreneurs (ANDE)³
developed this study with the following goals:
• Identify organizations that are working in the sector
• Identify potential partners for these organizations
• Identify where the gaps are for supporting entrepreneurs
• Identify where organizations can collaborate to promote entrepreneurship in Guatemala
With those goals in mind, we designed a questionnaire focused on the following elements:
• Type of organizational intervention
• Stage they support
• Type of capacity development they offer
• Financial support they offer (debt, investment, etc.)
• Sector they support
• Geographic presence
We would like to thank the 19 participant organizations that were a part of the first stage of this study, in which we were able to
visualize the support they offer, which areas are the strongest and where collaboration is needed to strengthen the entrepreneurial
ecosystem. We would like to mention that we have included information provided by the participant organizations, this study has not
been exhaustive, but a joint effort between of the organizations involved and ANDE networking.
(1) Doing business 2017, World Bank [On line]. [Retrieved on: January 18th, 2017]. Available here.
(2) Global Entrepreneurship Monitor (GEM). Global Report 2017 [On line]. [Retrieved on: January 18th, 2017]. Available here.
**ANDE is a global network of organizations that propel entrepreneurship in emerging markets as a way creating prosperity fostering stronger
relationships and partnerships in the local and international ecosystem. (www.andeglobal.org ).
Stage Idea Startup Early-Stage Expansion StageExpansion
Stage Consolidation
Fin
an
cia
l
Su
pp
ort
Cap
acit
ies
Develo
pm
en
t
Typ
eo
f S
up
po
rt
Entrepreneurial Ecosystem in Panama
*The organizations of “Financial Support” that are in Green offer financing and capacity development support.
Fundación Ideas Maestras
IPANDETEC
INCAE Business School
Universidad Latina de Panamá
Centro Cultural de España-
Casa del Soldado
Legal IT
Women Agriculture TechnologySocial Entrepreneurs Youth All
Emprendenova
FuckUp Nights Panama
Keys
VIVA
Others ¬
FUNDES
BernMarketique
First Tuesday
¬
¬
Open Arts PTY
Coworking
Mercado Culturoso
Open Innovation Lab
Fanzine Culturoso
AROC
Universidad Tecnológica de Panamá
Geographic PresenceP
rese
nce
at
na
tio
na
l lev
el Panamá
What kind of support do they offer?
Tipo de
intervención
74% of the participant organizations offer
support on education on entrepreneurial
culture, 68% on training to entrepreneurs;
these are fundamental elements to boost
the development of startups in a short,
medium and long term.
Another important element is that 42% of
the organizations do some research about
the topic, which allows the ecosystem to
get relevant and updated information to
understand the current state in order to
lead strategies and efforts to potential
opportunities and markets.
32% give support to intermediaries, this
means, financial institutions or foundations
that give support to incubators,
accelerators, funds, etc.
The weakest point in the ecosystem is the
financial support offered by the
organizations, which shows the lack of
financing opportunities for entrepreneurs
to keep growing and increasing their
impact.
11%
Financial
Support
68%
Training to
entrepreneurs
74%
Education on
entrepreneurial
culture
42%
Research
about the
topic
32%
n=19
Support to
conveners Type of
Support
How do organizations provide these capacities?
The main ways that organizations in Panama are working to develop capacities are mentoring, business plan
development/ incubation, financial/ accounting support, and in a lower level activities related with multisector
articulations, congress, seminars and international open space conferences; and leadership programs.
42%
37%
32%
68%
37%
42%
32%
0% 20% 40% 60% 80%
n=19
Training and Courses
Financial and Accounting Support
Leadership Programs
Mentoring
Accelerator
Market Research and analysis
Business Plan and Incubation
Capacity Development
OrganizationBusiness Plan
Development/ Incubation
Market Research and Analysis
Acceleration Mentoring Leadership ProgramsFinancial and
Accounting SupportTraining and Courses Others
FuckUp Nights Panamá
IPANDETEC
Legal IT
BernMarketique
VIVA
Fundación Ideas Maestras
First Tuesday
Universidad Latina de Panama
Centro Cultural de España-Casa
del Soldado
FUNDES
INCAE Business School
Emprendenova
Coworkingpty
Open Arts Pty
Mercado Culturoso
Open Innovation Lab
Universidad Tecnológica de
Panamá
Fanzine Culturoso
AROC
Investment in Panama
Out the 19 organizations, just 2 of themgive financial support trough equity.
Organization CapitalDebt
(Mezzanine)
Debt
(Loans)
Emprendenova
Open Arts PTY
2
0
0
0 0.5 1 1.5 2 2.5
Debt (Loans)
Debt (Mezzanine)
Capital (Equity)
Where can I find more information about the
organizations?Organization Website
FuckUp Nights Panamá http://www.fuckupnight.com/
IPANDETEC http://www.ipandetec.org/
Legal IT http://www.legalitabogados.com/
BernMarketique http://www.Yaelbern.com/
VIVA http://www.vivaidea.org/
Fundación Ideas Maestras http://www.ideasmaestras.org/
First Tuesday http://www.ftpanama.com/
Universidad Latina de Panama http://www.ulatina.ac.pa/
Centro Cultural de España-Casa del Soldado http://ccecasadelsoldado.org/
FUNDES http://www.fundes.org/
INCAE Business School http://www.incae.edu/es/investigacion/lace.html
Emprendenova http://emprendenova.com
Coworkingpty http://coworkingpty.com
Open Arts Pty http://openartspty.com
Mercado Culturoso http://mercadoculturoso.com
Open Innovation Lab http://openlab.kernelcmt.org
Universidad Tecnológica de Panamá www.utp.ac.pa y www.emprende.utp.ac.pa
Fanzine Culturoso http://fanzineculturoso.com
AROC http://arocpanama.com/
Glossary
Entrepreneurial Stage:
• Idea (concept): The business is just an idea or a prototype; the organization is not formally established; capital and capacity development
services resources can demonstrate the business model viability and it represents a high level risk.
• Startup: The business is formally established; products and services are starting to be produced. The use of capital or capacity
development services is being oriented to product development, as well as commercialization.
• Early Stage: The product is already tested, but it could have low sales, negative cash flow, and a small team. The capital and capacity
development are oriented to star the commercialization processes, trying to reach an equilibrium.
• Expansion Stage: The business model has been proved and financially has reached a breakeven. Capital and capacity development are
oriented to prove that the model is scalable.
• Growth Stage: The organization has an scalable business model and is financially viable. Capital is required to accelerate growth, for
example: investing in new infrastructure and exploring new markets.
• Consolidation: Stage before of the public offer.
Financial Support:
• Capital (Equity): It is a fund for big businesses and is generally used for important business expansion or internationalization. Private
Equity provides capital in exchange of shares provided by the business., and it also contributes with non-monetary resources such as
contacts, best practices, professionalized management, and so on. Their participation in business is temporary and last between four and
seven years. (1)
• Mezzanine: It is a hybrid between debt and equity that is used for business expansion, and basically this debt entitles the lender to
convert it in equity if cannot be liquidated on time. (2)
• Loan: The financer provides to the entrepreneur a certain amount of money, which has been established under a contract, indicating the
ways that the capital has to be returned, as well as the loan interests that must be repaid, with deadlines predetermined by a contract. (3)
1. Moreno, Tania. Expansion [on line]. 2016. [Retrieved on March 31, 2016]. Available here.
2. Investopedia [on line]. 2016. [Retrieved on March 31, 2016]. Available here.
3. López Domínguez, Ignacio. Expansion [on line]. 2016. [Retrieved on March 31, 2016]. Available here
We want to thank all of the organizations that participated in this survey and recognize the
great contribution they make everyday to the entrepreneurial ecosystem in Honduras.
If you are interested in being part of this map, please fill this survey.
For more information, contact the regional staff of Central America & Mexico ANDE
Chapter:
Katia Dumont
Regional Manager
ANDE Central America & Mexico
Email: katia.dumont@aspeninst.org
Rosario Uriarte
Programs Coordinator
ANDE Central America & Mexico
Email: rosario.uriarte@aspeninst.org
Twitter @AndeMexicoCA
http://www.andeglobal.org
About the study of Panama’s Entrepreneurial Ecosystem