Ecuadorian and foreign entrepreneurs receive up to $ 20,000 in seed capital; private and public sector provide this support

In most programs, this capital is not reimbursable, but in other plans it returns between 5 % and 7 %, in the event that entrepreneurship is successful.

The 2016 earthquake hit the economy of the family of Ignacio Mero, 35, a native of the province of Manabí.

Together with their grandmother and mother they are dedicated toSale of toquilla straw hats and for this sinister his work was affected.

The family venture entered the Re-Ecuador program, initiative led by the Alliance for Entrepreneurship and Innovation (AEI), which gave it a seed capital during 2019.

"They asked us some questions and helped us. Seed capital consisted of giving the final finish to the hats, that is, washing, ironing, tapes for a year," says Ignacio.

Entrepreneurship records an average sale of ten hats per month and have managed to distribute to provinces.

Seed capital works as an economic instrument, support in training or materials so that business ideas or already constituted manage to get underway.

There are programs that occur from $ 1,000 to $ 20,000 and the amounts vary according to the areas. For example, for technology businesses the amount is higher.

These funds come from public, private sectors and international cooperations.

In most programs this capital is not reimbursable, but in other plans it returns between 5 % and 7 %, in case the entrepreneurship is successful.

The AEI has registered more than 5,000 entrepreneurs and is currently not directly giving the seed capital, but it has agreements with other institutions to manage this impulse as with the Senescyt, Crisfe Foundation, Ministry of Production, Conquito and Preno of the Private Technical University of Loja (UTPL).

Belén Mora, Rein and Sale Executive Ecuador (AEI initiative), says there is a Articulation with different public, private actors and academia to strengthen the innovative entrepreneur through seed capital.

"Seed or entrepreneurial capital is an initial investment that starts operations and are normally entrepreneurs that are at an early age. Its destination is the start of the company. It is made as an ecosystem investment rather than a business," he explains and adds that seed capital is a high -risk, but necessary investment.

In Conquito (Economic Promotion Agency) they have made several seed capital calls. Last May they closed one of $ 3,000 with more than 2,138 applicants, of which 150 were left of women and young people.

The second call, which ends on August 1, is $ 20,000 and will select 50 projects.And the third starts in August for $ 1,000 and hope to choose 350 ventures or ideas. These values ​​are for each project.

"If the entrepreneur manages to succeed, it is that between 5 % and 7 % of the amount received can be returned. It can be in money or social or environmental impact, but in general terms it is a non -refundable capital, which assumes the risk is conquest," explains Wilson Merino, executive director of Conquito.

And he also mentions that they monitor that project with technical training. Resources come from the municipality of Quito or international cooperation.

Meanwhile, 66 Venezuelan and Lojanos ventures received non -reimbursable seed capital from the initiative led by the UTPL under the financing of the Ecuadorian italus for sustainable development (Fieds).

The beneficiaries will receive an amount of $ 3,000 to $ 10,000 in the next five months, according to the business plan presented by entrepreneurs. Of the selected businesses, 50 % are led by women.

Vicente Torres, director of the Fieds project, says they are52 subsistence businesses with a roof of $ 3,000 and 14 technological base with $ 10,000 not reimbursable.

"This is an implementation through the Incubation Center, they will be managing the capital, granted by the Fields, together with the UTPL and administer in its business phase. We hope in November have implemented the 66 business ideas," he says.

And within those beneficiaries is Judith Vivar with her Chaigold tea, of the Munay Naturals brand. She incubated her entrepreneurship in Presto and after applying to the call of Fields and other associations will obtain $ 10,000 for working capital and machinery implementation.

"This will at the same time contribute to the improvement of the local economy and small producers in Loja," says Judith.

Chaigold tea markets it at the national level at 54 points of sale between ecotiendas and supermarkets.

Torres adds that this capital is to polish the business plan and its monitoring will be until October 2022.

As well as the AEI there are other articulators for seed capital such as the public company for the management of innovation and competitiveness (epic), which has ten agreements underway.

Catalina Vera, director of Entrepreneurship of epic, points out that they are now in a connection phase between the organization, institution or company that will provide seed capital with the entrepreneur.

"We give the accompaniment through advisors who review the finances, articulate the projections so that it is much more mature (the business) and can access this risk capital and connect it with the allies," he says.

Epic has 5,600 ventures registered in the incubation program and 50 in the acceleration. Of these are addressed for seed capital.

Given:

To apply to any of the calls or programs carried out by the organizations, public or private companies mentioned, it is important to review the website of each, or social networks.