Wall Street Journal Exposes Startup Chile Fraud

The Wall Street Journal reports that the Startup Chile program is a huge waste of government funds.

Start-Up Chile spent $40 million on grants, its economic achievements have been limited. About 80% of the foreign firms that are accepted leave after meeting the required six-month stay. Some 300 new companies are accepted annually, but the large portion opting to depart highlights the obstacles Chile still faces in fostering entrepreneurship and innovation outside its core industries….

Chile has a lot going for it. Businesses are attracted to its political stability and its ranking as one of Latin America’s least-corrupt countries. Residents enjoy its wine, snow-capped mountains and rugged coastline.

But new businesses in Chile still face complications. The World Bank’s 2015 Doing Business report, which compares regulations in 189 countries, lists Chile below Colombia, Mexico and Peru in terms of the ease of operating a company there.

Alberto Rodriguez, the World Bank’s country director for Chile, Bolivia, Ecuador, Peru and Venezuela, said that the countries need to create a more business-friendly environment by focusing on such areas as regulation and infrastructure.

The Doing Business report states that Chile has failed to improve its position compared to other countries. For instance, Spain was behind Chile a few years ago but is now ranked higher.

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One Response to Wall Street Journal Exposes Startup Chile Fraud

  1. Mett Brett says:

    Start UP Chile program also face the fraud.They offered me and other participants 40 000 $.But more then 50 % of the 100 projects in each generation was terminated by no reason.Stuff of this program has no professional skills,they cant manage and solve simple problems.It happens always with startups that come to Chile from abroad

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