Entrepreneurship in Chile
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bUSiness CHILE THE VOICE OF THE CHILEAN-AMERICAN CHAMBER OF COMMERCE N°281, JULY 2012 Entrepreneurship in Chile: Beyond the Start-Up TRADE TESTIMONIAL INTERVIEW SPECIAL REPORT Next Stop Brazil for Michael Reid, Americas Waste Management Chilean Dotcom Editor, The Economist in Chile CONTENTS bUSiness CHILE THE VOICE OF THE CHILEAN-AMERICAN CHAMBER OF COMMERCE N°281, JULY 2012 LIFE IN THE SLOW LANE 6 TRADE TESTIMONIAL 28 SpotliGHT 42 Next Stop Brazil for Chilean Biotechnology: Fueling Chile’s London Calling Entrepreneurship in Chile: Dotcom Competitiveness Beyond the Start-Up ComparaOnline, a Chilean price AmCham led a Chilean delegation Chile’s athletes are TRADE TESTIMONIAL INTERVIEW SPECIAL REPORT to the 2012 BIO International Next Stop Brazil for Michael Reid, Americas Waste Management comparison service, is using capital preparing to compete at Chilean Dotcom Editor, The Economist in Chile raised from an Argentine venture Convention in Boston in June to the XXX Olympic Games, promote US-Chile cooperation in capital company to finance its but has the Olympic spirit 12 expansion into Brazil. biotechnology. Entrepreneurship in been lost for good? Chile: After the Start-Up 8 CUstoms ProcedUres 36 Economic SnapsHot In Chile’s Year of A Single Window Customs Chile’s Energy Insecurity Entrepreneurship it is Clearance System With Chile’s future energy attracting more and According to a recent World Bank supplies at risk due to delays in better entrepreneurs, but report, Chile’s customs clearance new generation projects, reforms more venture capital is procedures are cumbersome, but are needed to establish clear rules needed to fuel the a new single window system is in the project approval process. investment cycle. designed to change that. 20 SPECIAL REPORT 12 COVER StorY 38 BREAKFast Waste Management Entrepreneurship in Chile: Competition Law Compliance © 2012 AMCHAM CHILE in Chile Beyond the Start-Up Reproduction in whole or in part is National Economic Prosecutor strictly forbidden without permission More Chileans are taking the Felipe Irarrázabal told AmCham Chileans are producing from the publisher. Opinions expressed in entrepreneurial plunge, but members that self-regulation is more garbage – on bUSiness CHILE are those of the authors success stories are needed for and do not necessarily reflect those of key to avoiding anticompetitive average 1.3 kilos per AmCham or bUSiness CHILE. We accept no start-ups to obtain the funding practices and fines. capita daily – most of responsibility for the accuracy of the articles needed to grow internationally. and any unforeseen errors. bUSiness CHILE which ends up in sanitary is published monthly, 10 months a year and mailed free of charge to AmCham Special Report 40 INTERVIEW landfills.A round half of members. Letters are welcome. They should 20 be accompanied by the author's name Waste Management in Chile Brazil’s Slowdown: What it that could be reused or and daytime telephone and sent to Economic growth means Chile Means for Chile recycled, versus just 10% [email protected] For reasons of is generating more waste, but Michael Reid, the Americas space limitation, AmCham reserves the today, but companies reducing disposal costs and Editor for The Economist, talked right to edit letters published. and consumers must be Advertising inquiries should be addressed contamination means fostering to bUSiness CHILE about how to AmCham's Sales Department: Paulina recycling and bioenergy projects. Brazil’s economic slowdown willing to pay the cost. Dellafiori: E-mail: cristina.ordenes@ amchamchile.cl; Phone:2909741. Fax 2120515 could affect Chile. Av. Presidente Kennedy 5735, Torre Poniente, Of.201, Las Condes, Santiago de EDITORIAL BOARD 2012 Chile; E-mail: [email protected]; www.amchamchile.cl; www.businesschile.cl CHAIR, Kathleen Barclay, Asesorías KCB; VICE CHAIR, Karen Poniachik, British American Tobacco Chile; VICE CHAIR, Manuel José Vial, Grupo Vial Abogados; PAST CHAIR, Michael Combes, Marco Chilena; GENERAL EDITOR, Julian Dowling, AmCham Chile; ASSISTANT EDITOR, Mariana Ossa, ProdUCTION AmCham Chile. K & D Comunicaciones Ltda. Olga Kliwadenko, MEMBERS General Manager, 11 de Septiembre 1945 - Of. 516, Providencia. Phone: 376 9877, Rodrigo Ballivián, AmCham Chile; Ari Bermann, 3M Chile; Pelayo Bezanilla, Coca-Cola de Chile; Ruth Cell: (09) 6601-5505; Bradley, Freelance Journalist; John Byrne, Boyden Consultores Chile; John P. Dill, Project Management; e-mail: [email protected] Francisco Garcés, Banco de Chile; Ricardo Inostroza, AES Gener; Javier Irarrázaval, The Walt Disney www.kyd.cl Company Chile; Olga Kliwadenko, K&D Comunicaciones; Gideon Long, BBC/The Economist; Vincent McCord, Asesorías e Inversiones CarCon; James Newbold, Tanager Investment; Roberto Ossandón, Ossandón Abogados; Paulina Dellafiori, AmCham Chile. bUSiness CHILE July 2012 3 AMCHAM GLOBAL SPONSORS 2012 4 July 2012 bUSiness CHILE Editorial Chile’s Entrepreneurs – Agents of Change 2012 is the Year of Entrepreneurship in Chile. The example provided by Chile’s businesspeople. The entrepreneur is the bridge between capital and labor, country’s business elite is mainly composed of generating value for society and acting as a catalyst for entrepreneurs who, in the majority of cases, have change. The entrepreneur is often seen as a modern built their businesses in the last few decades. Their day hero, particularly in growing economies where success has motivated others to take new risks new businesses provide an important base for job and assume new responsibilities, thereby building a creation. The entrepreneur sees opportunities where culture of entrepreneurship. others see roadblocks. Their ability to convert these And this is very significant for the country! opportunities into value is what accelerates growth. Chile has been considered an example of economic Being an entrepreneur is also about taking success because of its strong macroeconomic responsibility since he or she must assume and management. But the country needs to take the final manage risks to generate and sustain wealth. In many steps to development – and the most significant of parts of the world, entrepreneurship is a necessity these involves consolidating the budding culture of given high levels of unemployment, but this is not the entrepreneurship to perpetuate growth and create case in Chile which is near to full employment. opportunities for its people. Entrepreneurship is blossoming in Chile because This month’s issue of bUSiness Chile of an increasing number of opportunities available highlights several examples of this dynamic new to a broader base of the population. As pointed entrepreneurial spirit. On the technology side, the out in this month’s cover story, over 100,000 new start-up CompararOnline.com shows how a young businesses have been created in Chile since 2010. entrepreneur has formed a new business based on This represents a significant change from the a US model, and is moving ahead with financing past when it was perceived that Chilean culture – from venture capital investors to bring this model to particularly risk averseness – discouraged young the region. In the Spotlight we highlight AmCham’s people from choosing a start-up over more traditional initiative to promote new business in biotechnology, employment choices. taking advantage of the Chile-Massachusetts Why has this happened? Is this trend really agreement signed between the governments of Chile significant for Chile? and the United States. The reasons are many – better and more-broadly Entrepreneurs are Chile’s agents of change, available education, greater global connectivity (both pushing the country towards development. This spirit virtual and physical), well-focused and implemented is a value that is shared with the United States. We at public programs, as well as better economic AmCham see this as one of the greatest opportunities conditions which have made it possible for more to build new bridges for trade and investment and Chileans to take managed risks. will be working hard to make such opportunities into An additional factor often overlooked is the realities for the benefit of the people of both nations. BOARD OF DIRECTORS EXECUTIVE COMMITTEE EXECUTIVE DIRECTOR Enrique Ostalé, Walmart Alfredo Ergas, Enersis PRESIDENT VICE CHAIR FINANCE AND ADR COMMITTEE Javier Irarrázaval, The Walt Disney Company Rodrigo Ballivián, AmCham Karen Poniachik, British American DIRECTORS Tabacco Chile Guillermo Ochoa, 3M VICE-PRESIDENT; CHAIR LABOR AND HUMAN CHAIR COMMERCE AND BUSINESS CAPITAL COMMITTEE VICE CHAIR EDITORIAL COMMITTEE Carolina Valdivieso, Kimberly Clark Pablo Achurra, Aramark Sudamérica CHAIR TRADE AND INTERNATIONAL Luis Siles, IBM de Chile Mauricio Ramos, VTR Global Com SECRETARY GENERAL; CHAIR LEGAL BUSINESS Mitch Larsen, U.S. Embassy Kathleen Barclay, Asesorías KCB Ltda. COMMITTEE CHAIR EDITORIAL COMMITTEE Michael Grasty, Grasty, Quintana, Majlis & Cía Fernando Concha, Citigroup EX OFFICIO CHAIR FINANCE AND CAPITAL MARKETS TREASURER Felipe Cerón, AES Gener Gonzalo Iglesias, Coca Cola de Chile ADVISORY COUNCIL CHAIR CORPORATE AFFAIRS AND AmCham Mision Statement PAST PRESIDENT SUSTAINABILITY COMMITTEE Rubén Covarrubias, “Promote free trade and business between Chile and the United States" Ricardo García, Camanchaca Inc. Universidad Mayor Luiz Marcelo Moncau, Microsoft Chile bUSiness CHILE July 2012 5 TRADE TESTIMONIAL Next Stop Brazil for Chilean Dotcom ComparaOnline, a Chilean price comparison service, is using capital raised from an Argentine venture