Entrepreneurship Is the Best Option for Latin America

Malnutrition is still causing deaths today, despite efforts to reduce hunger in the world. Nearly three million children will fail to reach their fifth birthday due to malnutrition, according to UNICEF.[1]

Latin America managed to reduce the number of people suffering from hunger from 53 million people in 2010, to 49 million by 2012, making them the region that has improved the most, according to the Food and Agriculture Organization. Still, malnutrition eradication programs have been struggling to achieve their goals and, considering that only 9.2% benefited from such programs,[2] there is still much more to be done.

Given that the world offers enough resources to feed twice the current population, hunger should not be a problem.[3] The main issue is that food distribution is subject to merchandising, and therefore excludes the poorest areas. In a capitalist system, people work to pay for their needs. However, where manpower exceeds employment, especially in developing countries, the unemployed are left vulnerable.

The solution is not to collect and distribute food, but to achieve full and productive employment with decent work for all, including women and youth. If the job market is deteriorated and saturated, one of the best solutions is for the government to provide support for the promotion of new companies and entrepreneurs.

In Mexico there are 52 million people living in poverty,[4] 28 million with food shortages, and 11.7 million in extreme poverty.[5] However,  Mexico is also the Latin American country with the second highest number of millionaires, implying a bad distribution of wealth rather than a lack of wealth.[6] This sector represents a many opportunities for entrepreneurs.

In Mexico, 99.6% of businesses are SME´s. More than 4 million establishments generate 52% of the GDP and 72% of the jobs, meaning there are more than 25 million jobs in the country.[7]

It has been found that start-ups generate a significant number of hirings per year, increase the national productivity, invest in infrastructure, introduce new services and products, and improve the standard of living.[8] SMEs are the best option for the economic development of Mexico and Latin America.

Entrepreneurs represent development and progress; in addition, they earn better and pay more, resulting in better conditions for employees. Entrepreneurship can thus make a difference in improving the quality of life for those suffering from poverty and hunger in Latin America.