World Entrepreneurship Day: Peru has the highest rate of companies per inhabitants

Peru stands out for having the highest per capita proportion of inhabitants per company, with one formal company for every 13 people[1]. This statistic reflects a dynamic business panorama in the country, where commercial activity plays a significant role in the economy and in job creation. In addition, it is the country with the greatest entrepreneurial spirit in the Latin American region, ranking fifth worldwide according to the Global Entrepreneurship Monitor (GEM)[2].

For Omar Rosales, dean of Business programs at the Scientific University of the South, this trend is largely attributed to the fact that Peru presents two of the main motivations for entrepreneurship: opportunity and necessity. “We can witness how, due to the current situation or situation, many Peruvians have sought to capitalize and start businesses. This phenomenon is also fueled by the worrying poverty rate in the country, which encourages people to establish business ideas as a way to generate income with a small initial capital.”

However, the dean warns that the lack of training and limited access to financing can generate problems in the short, medium and long term, which are two of the most important barriers to entrepreneurship in Peru.[3] “The absence of adequate planning of sales actions, comprehensive strategies and limited knowledge of the market result in poor business management, which in many cases causes its closure,” says Rosales.

Therefore, within the framework of World Entrepreneurship Day, the spokesperson for the Scientific University of the South highlights some key indicators, essential for making informed decisions, establishing clear objectives and detecting areas for improvement, which contributes to effective management and growth. sustainable and successful entrepreneurship:

1. The return on investment It is a financial measure that evaluates the profit or loss in relation to the initial investment, and is calculated using a formula: the profit minus the investment, divided by the investment. Obtaining a positive number as a result is an indicator of profitability. This metric not only allows you to compare different capitalization opportunities, but also make informed decisions about where to allocate resources.
2. Customer growth rate It is another important indicator that reflects market acceptance and the expansion potential of a venture. To boost this metric, strategies such as opening physical stores or diversifying the product line to adapt to changing business needs can be considered.
3. Customer retention rate It is essential like the acquisition of new ones, since it is an indicator of customer satisfaction and the quality of the product or service offered. To achieve optimal loyalty, it is essential to set clear service expectations, build trust, and gather feedback to make continuous improvements.
4. The profit margin on sales It is a financial indicator that shows the relationship between net profit and your total sales revenue, which allows you to evaluate operational efficiency as well as overall profitability. In addition, it facilitates the determination of the sales price and the identification of those elements that generate reduced performance, thus contributing to making informed decisions about production and marketing.
5. The level of customer satisfaction It is a reflection of the quality of the product or the effectiveness of the service to the user. It can be evaluated through surveys, direct feedback, online reviews, and analysis of repeat sales data. This allows you to determine if a consumer will make a repeat purchase, identify aspects that differentiate you from the competition, and encourage positive word-of-mouth recommendations.

Likewise, the expert points out the importance of continuous training for those who wish to start a business, since there are various barriers that entrepreneurs must overcome when starting a business. Among them, the lack of knowledge and skills necessary to manage and expand it properly. «Overcoming short-term limitations is essential for the success of a venture. It is recommended to take special programs or careers for working people, take courses, attend workshops or seek mentoring. In addition to maintaining a constant willingness to learn and adapt to new trends and emerging technologies.”

Finally, Rosales highlights that it is essential to strengthen the entrepreneurial ecosystem and promote the economic development of the country, as it generates employment opportunities.

[1] Peru: the most entrepreneurial country in the world. Rolando Arellano. Available in: Peru-The-most-entrepreneurial-country-in-the-world_Rolando-Arellano.pdf. Last review: April, 2024.

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