Obama Administration Launches Initiative to Promote Startup Cooperation with Latin America

The Obama administration is seeking closer economic cooperation with Latin America to enhance opportunities for startups and SMEs in the U.S. and across the hemisphere. This week, the U.S. State Department is launching the Small Business Network of the Americas to promote international cooperation between TBED institutions in the Americas.

The State Department will launch the Small Business Network of the Americas (SBNA) International Sister Center Program on September 11th in Orlando, Florida. The SBNA was established in partnership with the U.S. Association of Small Business Development Centers (SBDCs) and organized by the Department of State to convene representatives from SBDCs, startup incubators and accelerators, universities, and other organizations from across the Western Hemisphere that promote entrepreneurship and innovation.

The program aims to build lasting international Sister Center partnerships that can assist startups and SMEs with access to a network of business services including counseling, training, and financing. To date, over 80 organizations are participating from countries including Mexico, Canada, and Brazil. These organizations serve 250,000 small and medium enterprises. A similar number of U.S. SBDCs also are participating, using the network to explore International Sister Center partnerships with SBNA organizations.

The launch of the SBNA follows a concerted push by the Obama administration to pursue deeper commercial ties with Latin America. In mid-November the Department of Commerce is leading a senior-executive business development mission to Mexico. The mission will highlight export opportunities in advanced manufacturing, information communication technologies, and health IT and medical devices. The agenda includes meetings with high-level national and local government officials, and country and industry briefings.

Intensified business outreach to Latin America is not just about strengthening ties with allied countries. Over the past decade, Latin America has witnessed strong, sustained economic growth that has been achieved, in part, by government support for innovation, business development, and regulatory reform.

A recent report released by the OECD, Start-up Latin America: Promoting Innovation in the Region, cites the importance of public policy in addressing gaps in funding and services that support startup growth. As the economies of Latin American countries have developed, national governments have developed stronger and more sophisticated tools to promote entrepreneurship and support high-growth SMEs.

While the OECD report acknowledges that Latin America is a highly diverse region, researchers have identified two key trends that are supporting the growth of national innovation: the increased role of local and regional governments in promoting entrepreneurship and innovation, and the emerging role of large companies in supporting startups as part of their broader, open innovation strategy.

The report identifies five key areas that can support the growth of innovation systems in Latin America: increasing coordination in strategy planning; ensuring a balanced mix of support for startups and SMEs; designing and implementing more sophisticated tools that can help boost competitiveness; working more closely with the private sector; and, developing effective tools for measuring success.

The Small Business Network of the Americas has the potential to provide Latin American policymakers with the assistance they need to strengthen their national innovation systems while encouraging economic cooperation and business development between the United States and allied countries in the Western Hemisphere.