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How Innovation and Technology Have Helped Latin American Businesses Survive?

By CIOReview | Friday, September 18, 2020

The pandemic has affected the world’s economy like nothing ever before, especially in Latin America, due to countermeasures taken by the government like people staying home and business closing.

FREMONT, CA: With the lockdown easing in some parts of the region, the pandemic’s impact on the business ecosystem is turning to be evident, unveiling, among other things, stories about the companies that survived the storm and even increased their profitability. In a survey, above half of the executive and business owners in Latin America spoke about their concern about the pandemic’s negative impact on the region’s economy. 

Opportunities for online businesses in the region

While the pandemic has had some severe consequences for Latin America’s economy, it meant a rise in profits for numerous businesses that were already prepared to provide their services or products via e-commerce platforms. As people were asked not to go outside, there was only one way to continue doing business using the internet. The experience that companies earned in the last few months indicate that businesses that can operate online may have been more resilient to the pandemic’s impacts.

Growing markets in Latin America drive a call for digitization

According to a survey, more than 45 percent of the respondents displayed that they expect Latin American economies to recover and grow in the future despite the present challenging times. Also, more than 57 percent of the participants in this survey already own a business in Latin America and spoke about expanding further into other countries in the region.

Increasing amounts of foreign investors seek to expand their business to Latin America, a region with a dynamic market and a population of above 626 million people whose access to mobile phones will reach 80 percent in 2025. Business opportunities in Latin America are massive, even for those who have not yet decided to build an online business brand. 

Tech ecosystem overview in Latin America

Companies in Latin America are highly dependent on technology and innovation to provide their products and services to a broader audience. The Fintech industry is an excellent example of this, as this sector is regarded as one of the most attractive sectors for foreign investors.

Financial entities that provide their services with the help of technology are considerably increasing across Latin America. Countries such as Mexico, Chile, and Colombia lead the countries’ rankings with most Fintechs startups in Latin America. Furthermore, the region’s governments have promoted the creation of regulatory frameworks to define this sector's operating rules.

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