Colmena66 report confirms roadblocks to entrepreneurship in Puerto Rico
In 2023, 711 entrepreneurs responded to the Annual Entrepreneurship Survey, a 28% increase from 2022.
Colmena66, a program of the Puerto Rico Science, Technology and Research Trust, known for connecting entrepreneurs with the “right resource at the right time” through its Resource Network of Entrepreneurship Support Organizations, presented its annual report on the State of the Business Community in Puerto Rico.
The survey, which gathered data from 711 entrepreneurs, identified several roadblocks that these businesses face in Puerto Rico, including a lack of contingency funds (84.3%); obstacles with government regulations (47.9%), difficulty in getting and retaining employees (37%), and reliance on personal savings to finance their businesses (85.9%). However, 28.5% of respondents reported having a local reach in their community or municipality.
The survey also revealed that the organizations that responded to the survey in 2023 deployed $146.6 million in capital for their operations, a 62% increase compared to 2022.
The businesses featured in the report were selected based on their responses to the 2023 Annual Entrepreneurship Survey and include ConVida Cocktail Lounge, La Cocina de Mamu, DEMA Labs, Woody’s Packaging Solutions, and Meliora Centrum.
The survey conducted an analysis to select businesses that represent Puerto Rico’s entrepreneurial diversity, executives said.
Different stages of development, types of business, industries, municipalities, gender, race, challenges, and opportunities were considered, with the goal of showcasing the support each received from different organizations throughout their development stages.
The entrepreneurial support organizations named in the survey included Grupo Guayacán, Centro para Puerto Rico, and Centro para Emprendedores.
Participants were also asked about gaps in the ecosystem, which include the need for support when it comes to exporting. The survey showed that while 45.6% of entrepreneurs are interested in reaching U.S. and international markets, 66.7% are unaware of export incentives. Additionally, 34.5% of business support organizations wish to address export issues but are unable to.
Meanwhile, 64.8% lack seed capital, 60% lack financial knowledge and 66.4% reported losses between $1,000 to $20,000 due to delays in obtaining operating permits. About 15.7% of respondents are not formalized due to associated costs.
Regarding workforce development, 67.9% of respondents plan to recruit employees, though 49.4% are unfamiliar with workforce incentives.
Crisis and disaster preparedness was also addressed, with 93% of businesses that took a quiz showing a “moderate to high level of vulnerability to a crisis or disaster,” Colmena stated.
Another point addressed in the report is the “decline stage” of participating businesses — 2.7% of them confirmed being in this stage, with 51.2% attributing failure to changes in the economy or market.
No entrepreneurial support organization currently specializes in serving entrepreneurs in this stage, according to the study.
A core focus of Colmena66 is the gathering and analysis of data on entrepreneurship and economic development. Since 2016, Colmena66 has gathered data from more than 20,000 entrepreneurs.
In 2023, 711 entrepreneurs responded to the Annual Entrepreneurship Survey, a 28% increase from 2022.
The report also includes data from an annual survey conducted among the Resource Network, which comprises nonprofit organizations, academia, government and capital access entities. This year, 84 organizations participated, a 17% increase from the previous year.
Boricua Emprende Fest
During a news conference to reveal the results of the study, Colmena and Science Trust officials also announced the upcoming sixth edition of the Boricua Emprende Fest (BE Fest), an annual entrepreneurial education and celebration event. It will be held for the first time outside San Juan, at the Complejo Ferial in Ponce on Aug. 23, from 8 a.m. to 6 p.m.
The BE Fest is co-presented by Titín Foundation and hosted by the Department of Economic Development of the Municipality of Ponce, is sponsored by Puerto Rico’s Department of Economic Development and Commerce (DDEC, in Spanish) and Hello Media, among others.
The event will feature more than 45 educational sessions covering topics such as marketing, creative industries, agribusiness, growth and access to capital, with more than 70 speakers. A Mentor Lounge will be organized by Entrepreneurs Organization with mentors who generate more than $1 million in annual revenue.
Additionally, 70 entrepreneurial support resources will be present at El Panal Expo, a “Lender Matchmaking” event by the U.S. Small Business Administration, and 30 entrepreneurs will be showcased at the Pop-Up Market. The BE Fest will offer sign language interpretation.
“Colmena66, Parallel18, Fase1 and [Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR)] federal grants are key programs of our entrepreneurship pillar,” said Science Trust CEO Lucy Crespo.
“Since its inception in 2019, the BE Fest has served as an ideal platform to connect entrepreneurs with essential resources for establishing or growing their businesses. Our goal is to foster a prosperous and equitable economy in Puerto Rico, driven by innovation, science and technology,” she said.
