With COVID-19 vaccinations underway in Argentina, the country can begin to look towards life after the turmoil of the global pandemic. While many businesses in the country have suffered over the past year, others have managed to adapt or grow. Some of the businesses best positioned to manage the crisis were startups in Argentina, which form part of the country’s growing tech scene. If you are interested in doing business in Argentina, understanding the success of the following three startups could provide invaluable market insight.
Argentina has the third-largest economy in Latin America and the Caribbean, with a gross domestic product adjusted for purchasing power parity (GDP-PPP) of $903.5 billion (all figures in USD). The country enjoys significant prosperity, registering a gross national income (GNI) of $22,120 per capita in 2019. Argentina is also a member of the Southern Common Market (Mercosur) — an economic bloc that also includes Brazil, Paraguay, and Uruguay — offering direct access to key markets in the region and a wide array of benefits to foreign investors establishing a company in the country. The country recorded more than $6 billion of foreign direct investment (FDI) inflows in 2019.
According to figures published by the National Institute of Statistics and Censuses (INDEC), for the second quarter of 2020, unemployment in Argentina increased by 13.1% due to the economic crisis generated by COVID-19. The impact of the pandemic on business in Argentina has been significant, with some sectors faring better than others. Despite the challenges, the country has been supporting startups through various initiatives promoted by the government to promote interaction between investors, startups, and large companies already established in the market.
Mercado Libre, Globant, and Cliengo are three notable Argentina startups that experienced growth during the pandemic and are expected to continue on their upward trajectories in 2021. Argentina has several initiatives in place to support startups, including the Entrepreneurs Law and the Knowledge economy law. In addition, Argentina has several well-established companies that offer invaluable market insight for those interested in doing business in Argentina.
