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Business Management Review | Friday, March 04, 2022
The pandemic has impacted the world's economy like nothing ever before, especially in Latin America, because countermeasures taken by the government like people staying home and businesses closing.
With the lockdown alleviation in some parts of the region, the pandemic's effect on the business ecosystem is revolving to be evident, unveiling, among other things, stories about the companies that survived the storm and even enhanced their profitability. However, in a survey, about half of the executive and business owners in Latin America spoke about their concern about the pandemic's negative effect on the region's economy.
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Opportunities for online businesses in the region
While the pandemic has had severe consequences for Latin America's economy, it increased profits for numerous businesses already prepared to offer their services or products through e-commerce platforms. As people were demanded not to go outside, there was merely one way to keep doing business through the internet. Moreover, companies' experience in the last few months indicates that companies that can function online may have been more strong to the pandemic's impacts.
Growing markets in Latin America push a call for digitization.
As per a survey, more than 45% 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% of the participants in this survey already own a business in Latin America and spoke about expanding further into other countries in the region.
Growing amounts of foreign investors seek to extend 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% in 2025. As a result, business opportunities in Latin America are massive, even for those who have not yet determined to build an online business brand.
Tech ecosystem overview in Latin America
Companies in Latin America are extremely dependent on technology and innovation to give their products and services to a broader audience. The Fintech industry is a superb example of this, as this sector is regarded as one of the most attractive sectors for foreign investors.
Check Out This : Gov Business Review
Financial entities that provide technical support services are considerably increasing across Latin America. For example, Mexico, Chile, and Colombia lead the country's rankings with the most Fintechs startups in Latin America. Moreover, the region's governments have promoted the creation of regulatory frameworks to define this sector's operating rules.
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