The Situation and Policies for Promoting Entrepreneurship in Costa Rica, 2020–2025

Abstract

Objective or purpose: To analyze the policies aimed at promoting entrepreneurship in Costa Rica.Importance of the topic: Entrepreneurship is essential to increase the number of micro, small, and medium-sized enterprises (MSMEs), which account for more than 90% of the country's businesses and exhibit high volatility.Design / Methodology / Approach: A review was conducted of the laws, plans, organizational structures, and actions related to entrepreneurship promotion using a mixed-methods approach based on the analysis of databases, strategic plans, and studies of the institutional environment and public policies for entrepreneurship promotion. Main findings or results: The findings revealed the need to develop and implement coordinated actions across organizations and sectors, strengthen collaboration among national institutions, municipalities, regional offices, associations, cooperatives, and business chambers, and foster closer engagement with entrepreneurs to provide guidance, support, and evaluation of initiatives. The study also identified that high costs and the conditions required to access benefits for MSMEs constitute significant barriers to entrepreneurship. Therefore, innovative mechanisms are needed to facilitate business formalization and improve access to incentives. Research limitations/implications: The main limitation was the scarcity of specific studies on the subject and the lack of more detailed statistical data, highlighting the need to strengthen information generation to support the design and evaluation of public policies.

Practical implications: It is recommended to implement support models focused on resources and financing, incorporate entrepreneurship tools into educational programs, and promote the development of entrepreneurial leadership, as well as the use of information technologies and business and social innovation as essential factors for entrepreneurial success.