Young entrepreneurs do not have access to productive credit – Diario El Sureño

A survey carried out by the Young sector of the Argentine Confederation of Medium Enterprises (CAME) determined that six out of every ten Argentine businessmen between 18 and 40 years old have difficulties or find it impossible to access productive financing. This is an age segment with a lack of support capital and flow of funds to invest.

BUENOS AIRES.- In the breakdown by sectors, those most affected in obtaining financing are: Tourism (66.7%), Industry (66.1%), Technology and IT (65.7%), Services (60%), Agriculture (60%) and Commerce (59.1%). These numbers raise concerns about the future and sustainability of these businesses in the current economic context.

In turn, the 1,350 young entrepreneurs surveyed identified the following problems in developing their company or venture: economic instability; scarce financing with high interest rates; high tax burden; excess requirements for the creation and/or development of businesses; lack of infrastructure and human resources; unfair competition and smuggling; and challenges related to adapting to new technologies and market trends.

Sectors and identity of young people

According to data collected by CAME Joven, with an average age of 32 years, 47% of young entrepreneurs are inclined towards activity in the commercial sector, 30.2% provide services and 13.8% are oriented towards the industry. Regarding the perception of identity, 71.6% of those surveyed call themselves “entrepreneur” and 28.4% recognize themselves as “businessman.” Although a large majority of those who consider themselves entrepreneurs (70.6%) are monotributist, they employ, on average, seven people.

Finally, when analyzing the origin of business creation, 81% mentioned being the founder of their company or venture and 19% mentioned being a generational replacement. For this reason, policies are required that allow the development and structural support of young business educators to overcome the identified barriers, especially in critical areas such as access to credit.