Colombia’s GDP Slows, but Antioquia New-Businesses Growth Comparatively Robust

A new report from Colombia’s national federation of local Chambers of Commerce (Confecamaras) shows that while the growth of Colombia’s gross domestic product (“PIB” in Spanish initials) slipped in 2015 versus 2014, Antioquia continued to support a relatively robust growth of new businesses.

The total number of start-up businesses registered with Colombia’s various local Chambers of Commerce last year dipped to 257,835 in 2015, down 15% from 303,270 in 2014, according to the Confecamaras report.

Start-ups in Antioquia (of which Medellin is the capital) also dipped last year — but only by a relatively modest 4.5%, to 33,666 new businesses, the study shows.

In contrast, business start-ups in Bogota plunged by 20.3% last year, and similarly fell by 13.9% in Valle del Cauca (of which Cali is the capital), the survey shows.

Supply of electricity and natural-gas stood-out in 2015 for growth in new businesses nationwide, while agriculture and mining start-ups declined sharply, the survey shows.

The greatest number of start-ups in Colombia were concentrated in wholesale or retail commerce, followed by hotel and restaurant services, industrial manufacturing, professional services, construction and “other” services, according to the study.

“In Colombia, there exists a relation between economic cycles and the creation of new businesses, which explains in good measure the dynamic behavior of enterprises in 2015,” explained Confecamaras president Julián Domínguez Rivera.

Despite the year-on-year decline in start-ups, the creation of more than 257,000 new businesses in Colombia “is a positive sign given that it means more investment, new jobs and the hope of greater productivity,” he added.

Wholesale beverage and tobacco start-ups grew 10.6% year-on-year, followed by Internet-based commerce (up 8.9%) and wholesale clothing (up 8.5%), according to Confecamaras.

Production of raw sugar (panela) by start-ups rose 43% year-on-year, while start-up manufacturers of vegetable and animal-derived fats and oils saw production rise 16% year-on-year, the survey shows.