September 10, 2021
Investment
Official Information

August brings record high in business creation and Minister Palacios highlights positive impact on employment

August brings record high in business creation and Minister Palacios highlights positive impact on employment
A total of 18,955 companies were created last month, the highest number on record. This figure also represents a 14.6% increase over the same month the previous year. The progress made in the Aysén and Magallanes Regions is worthy of note. The services sector once again showed the greatest momentum.

Economy, Development and Tourism Minister Lucas Palacios and Metropolitan Region Ministerial Secretary for Economy Magnolia Saavedra announced the record set for business creation at the Casa La Barca hostel in Santiago’s Providencia municipality.

A total of 18,955 companies and corporations were registered in the Official Gazette and Registry of Companies and Corporations (RES) in August 2021. In addition to representing a record high, this figure is also 14.6% higher than the same month last year.

A significant percentage of the purposes declared when the businesses were registered in August correspond to trade (purchase and sales), construction, transportation, consultancy services, rental services and international trade (imports and exports). The services sector once again showed the most momentum.

Minister Palacios noted, “we have never seen such a high rate of business creation as important as we’ve been seeing over the past months. The Economy Ministry set the goal of making entrepreneurs’ lives easier. Many people see enterprise as a way to get ahead and to incorporate new employees. Business creation also creates new jobs, which is very positive. Many new companies start out with limited capital and then see their business grow towards consolidation and new hires. We hope to see a link between business creation and new jobs in the coming months so that we can continue to make progress on the comprehensive recovery process we’ve drawn out.”

A total of 764,671 companies and corporations have been created since the electronic registry was launched in May 2013 (through August 31, 2021). Use of the “Your Company in One Day” tool has trended upward so far this year.

The high inter-annual growth of the registry is due to the progress that has been made in nearly every region of the country. The Aysén Region presented the greatest variation (70%), followed by the Magallanes Region (57.2%). For its part, the Metropolitan Region had the highest number of businesses registered in the RES at the national level, with 7,183 records (43.3% of the total).

Ministerial Secretary Magnolia Saavedra noted, “we are proud of these numbers because they show that the Your Company in One Day initiative is an excellent one. They also show how much Chileans want to join the formal labor market. We should also note that 36% of the companies’ founders are women. This is undoubtedly an important number and it is one that we would like to increase. The Economy Ministry will continue working to ensure that more and more women become business owners each day.”

Pamela Castro, an entrepreneur who launched her business in 2015 using the Your Company in One Day Tool, is now the owner of the successful Casa La Barca hostel. She explained that the pandemic forced her to reinvent herself. “The pandemic arrived soon after I received my license and I had to close the business for a long time. When I was able to reopen, I realized that digital marketing was key and that I had to learn how to use it. I had to learn little by little how to create and publish campaigns and that has allowed me to gain clients. I used to host tourists, but that hasn’t been possible during the pandemic. I saw that hospital and clinic patients needed lodging close to medical facilities, as did their relatives. I launched my campaigns and managed to gain a regular clientele. There’s no need to lose faith. We need to set aside our fear.”