Argentina’s Startup Boom Among G20 Economies Shines Bright
Argentina is making waves among G20 economies for its thriving startup ecosystem despite facing challenging economic conditions. In a study shared at the G20 Social in Rio de Janeiro, Argentina’s entrepreneurial surge highlights the country’s resilience and inventive spirit.
An Unlikely Contender in Startup World
Argentina’s recent emergence as a startup powerhouse has taken many by surprise. According to a Startup Genome and the Global Entrepreneurship Network (GEN) report, Argentina ranks tenth among G20 countries in terms of startup activity—a position not many would have predicted. Released during the G20 Social Forum in Rio de Janeiro, the study places Argentina in the spotlight, recognizing it as a high performer in the entrepreneurial arena.
The “APEXE: Aptitude and Policies for Exponential Entrepreneurship” report, a comprehensive study that evaluates the entrepreneurial potential of G20 countries, points to Argentina’s unexpected entrepreneurial boom. “Despite Argentina’s limited resources,” the report reads, “the country generates more startup activity than one would expect given its economic conditions.” For Argentines, this recognition underscores years of hard work and resilience against economic challenges that many in the global startup world can scarcely imagine.
A Thriving Ecosystem Fueled by Creativity
In a coworking facility in Buenos Aires, startups sit around laptops and dream up projects. Entrepreneurship is not for everyone. Inflation and limited foreign capital availability have made it a roadblock, but this hasn’t stopped Argentine startups from expanding. El País quoted Clara, a co-founder of a Buenos Aires-based digital education startup, who shared, “There’s a real hunger for innovation here. When traditional jobs aren’t enough traditional jobs, people find their way.”
María, the founder of a health tech startup, echoed a similar sentiment in an interview with a local media outlet: “We face so many challenges here, but that only makes us more resourceful.” Her company, which connects patients with virtual healthcare providers, recently received a seed investment from an international fund. “Investors appreciate that we’re solving real, immediate problems with very few resources,” she added. This success story is just one of many in Argentina’s thriving startup ecosystem.
According to the APEXE report, Argentina’s success in the startup sector lies partly in its entrepreneurs’ ability to innovate under pressure. Lacking the abundant capital of Silicon Valley or London, Argentine startups have had to build with efficiency and grit. This, in turn, has led to leaner, more adaptable business models that can succeed even under tight constraints.
Argentina in Context: The Global Landscape of Startups
While Argentina’s position in the G20’s startup ecosystem is remarkable, it’s only part of the bigger picture. The APEXE report highlights other G20 countries that are also making waves. As expected, the United States and the United Kingdom lead in startup support, largely thanks to favorable policies and well-funded ecosystems. Yet India and Brazil were also spotlighted for fostering high startup activity relative to their GDP.
Startup-driven growth now equates to about 14% of GDP in the United States, compared with Japan and Italy, where the ratio is more like 2%. Such inequalities, the report says, demonstrate just how vital policies are in translating innovation promise into tangible results. If nations like Japan or Italy could achieve similar levels of startup support, the report estimates an additional $2.7 trillion could be added to the global economy, boosting growth worldwide.
What’s Next for Argentina?
For Argentina, this moment of recognition validates the country’s resilience, but the future remains uncertain. Startup Genome’s findings suggest that while Argentina’s startup scene is impressive, it faces unique risks such as inflation and limited foreign capital availability. Juan Lopez, an economist from the Pontifical Catholic University of Argentina, said, “Argentina has shown it can innovate under tough circumstances, but sustaining this growth will require stability.”
Argentina’s entrepreneurs know this well. Even after the kudos, people fret about the path to come. ‘It is always something new,’ says José, a software developer who just launched an AI-powered business marketplace for local companies. “You can’t plan the future with an economy like this.” Like many in Argentina’s startup scene, José is optimistic, if cautious, about the future.
The APEXE report, which currently targets G20 countries—might become broader in future versions. Our pilot study has already started to open up discussions about the startup environment of these large economies and how new ecosystems such as Argentina’s can become an integral part of global innovation.
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As Argentina takes its place among G20’s top startup ecosystems, its entrepreneurs remind the world that innovation isn’t limited to the wealthiest nations. With creativity, resilience, and boldness, Argentina’s startup community proves it’s possible to thrive—even when the odds are stacked high.
