Starting a Business in Latin America, What Global Entrepreneurs Need to Know

For many years, Latin America was seen mainly as a market for export or investment, not as a place where world-class companies could be built. That perception has changed dramatically. Today the region stands at the center of one of the most important global growth shifts. Technology adoption, consumer sophistication, and entrepreneurial ambition have converged to make Latin America one of the most exciting destinations in the world for starting a business.

I have spent more than a decade working across the region, from Colombia and Mexico to Chile, Peru, and Panama. During that time, I have seen small startups become regional leaders and international companies struggle simply because they underestimated how dynamic these markets truly are.

This article draws on that experience to explain why Latin America offers such enormous opportunity and what every entrepreneur should know before taking the leap.

A Region of Opportunity, Scale, and Talent

Across Latin America, a new generation of business leaders is rewriting the rules. The region’s economies are becoming more connected, its infrastructure more reliable, and its talent pool more sophisticated.

In cities like Bogotá, Mexico City, Lima, and São Paulo, founders are launching companies that compete on a global scale. Venture capital investment has risen sharply in recent years, and regional ecosystems are maturing faster than anyone predicted.

Latin America’s advantages are clear:

• A young, digital-native population that embraces technology faster than almost anywhere else in the world.

• Lower operating costs and competitive labor markets that make regional scale achievable.

• Rapid growth in e-commerce, renewable energy, healthcare, and professional services.

• Governments increasingly open to foreign investment, double taxation treaties, and business-friendly reforms.

The key to success is understanding that each market, while part of a regional ecosystem, operates with its own cultural, legal, and economic rhythm.

Why Founders and Investors Are Looking South

In the past, many global entrepreneurs focused on Asia or Europe for expansion. But in recent years, Latin America has offered something those regions cannot: the ability to grow fast in markets that are still open to innovation and competition.

For example, a professional services firm expanding into Colombia or Chile can access well-educated bilingual professionals at a fraction of the cost of the United States or the United Kingdom. A healthcare investor entering Panama or Costa Rica can tap into modern facilities, medical expertise, and a global patient base attracted to quality care at accessible prices.

When I co-founded Biz Latin Hub, our mission was to help companies enter and operate legally, safely, and efficiently across multiple Latin American markets. That experience gave me firsthand insight into how quickly businesses can thrive once they are locally integrated and compliant.

Through my later ventures, including CraigDempsey.com, The Startup VC, and Medical Tourism Packages, I have seen the same pattern repeated many times: once a business understands local context and builds trusted partnerships, growth follows naturally.

Choosing the Right Country and Structure

Latin America is not a single market, but rather a collection of distinct economies with shared trends. Selecting where to start depends on your business type, risk tolerance, and long-term goals.

• Panama offers one of the most stable environments in the region, a strategic location, and strong banking infrastructure.

• Colombia provides access to a large internal market and is ideal for companies building technology, legal, or accounting service centers.

• Mexico connects directly to North American trade flows and has strong demand for manufacturing and digital services.

• Chile and Costa Rica are regional leaders in renewable energy and technology adoption.

In each case, success depends on sound local compliance. Setting up a company, hiring employees, and managing taxes can be straightforward with the right guidance but costly without it.

At CraigDempsey.com, I regularly share strategies for company formation, legal frameworks, tax optimization, and cross-border structuring based on real-world experience supporting hundreds of businesses across Latin America.

craigdempsey.com

Building Business Teams and Scaling Across Borders

Talent is one of Latin America’s greatest strengths. The region’s universities are producing skilled engineers, accountants, and designers who understand global standards but bring local perspective.

The challenge for many new companies is not finding talent, but building systems that attract and retain it. Creating remote-first policies, offering competitive benefits, and understanding employment laws are essential steps.

At The Startup VC, we invest in and build ventures that demonstrate this mindset. We have seen founders grow from a single country to a multi-market operation by focusing on people first. Technology, process, and financial control can all be replicated; culture cannot.

Entrepreneurs who empower local teams while maintaining international quality controls tend to outperform those who manage purely from a distance.

Buisness: Emerging Sectors, New Horizons

Beyond technology, there are multiple industries in Latin America that are expanding faster than global averages. Among these, medical tourism and wellness stand out.

At Medical Tourism Packages, we help international patients connect with accredited hospitals and specialists in Panama, Colombia, Costa Rica, and Mexico. Many travelers combine treatment with recovery stays in world-class resorts, supported by full concierge care.

This model is transforming the healthcare sector. It demonstrates that Latin America is no longer only exporting raw materials, it is exporting expertise, quality, and human care.

For investors, these sectors offer both profitability and social impact — improving regional health outcomes while stimulating tourism and local employment.

Lessons from my Entreprenerial Experience

Having guided multiple companies through expansion, investment, and acquisition phases across the region, a few lessons have become clear:

1. Local presence matters. Decisions made from abroad rarely capture the nuance of local regulation or market behavior.

2. Partnerships are critical. Building relationships with reliable local advisors saves time and mitigates risk.

3. Plan for growth, not survival. Latin American markets reward ambition. If you enter with a small mindset, you will stay small.

4. Regulatory compliance is your foundation. Tax, labor, and data laws are strict but manageable when addressed proactively.

Latin America rewards resilience and adaptability. It is not the easiest region to enter, but for those who approach it with the right strategy and respect for local knowledge, it is one of the most rewarding.

www.craigdempsey.com

Looking Ahead - Tips for Global Entrepreneurs

Latin America’s economic momentum is real. As global supply chains diversify and investors seek stable, cost-effective growth regions, Latin America offers everything the modern entrepreneur needs: opportunity, scale, and purpose.

If you are considering expansion or building something new, there has never been a better time to explore the region.

Learn more at CraigDempsey.com discover how we build and invest through The Startup VC and explore how healthcare and wellness are evolving through Medical Tourism Packages.

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