Costa Rica is in the top 5 of the best countries in Latin America to start a business, according to the Global Entrepreneurship Monitor (GEM) published in February 2025. The study analyzes 56 economies around the world, based on 13 factors that influence the environment for starting and growing a business.
Among them are: financing available to entrepreneurs and its ease of access; favorable policies and reduction of bureaucratic obstacles; programs to support entrepreneurs; education in entrepreneurship from school; transfer of research to the productive sector; quality and accessibility of commercial and physical infrastructure; and social and cultural norms that support entrepreneurship.
Based on the results, each country is given a National Entrepreneurial Context Index (NECI) on a scale of 1 to 10. With a score of 4, Costa Rica ranks fourth among the best countries for entrepreneurship in Latin America and 43rd in the world.
Although it has experienced economic and legal improvements – such as Law 10392, which extends the income tax reduction scale for new small and medium-sized companies from three to six years; and the Law of Incentives for the Formalization and Development of MSMEs – the overall quality of the entrepreneurial environment remains insufficient.
Social and Cultural Norms
One of the best-rated areas in our country was Social and Cultural Norms (5 points). This suggests that the local culture encourages and celebrates entrepreneurship, which is a positive point to motivate more entrepreneurs.
Women’s entrepreneurial resources
Women’s access to entrepreneurial resources was also rated as satisfactory (score 5.1), indicating that there is some equity in access to resources for entrepreneurship between genders.
In contrast, entrepreneurial financing received a low rating (3.3), indicating that entrepreneurs face great difficulties in accessing funds. Government policy in terms of taxes and bureaucracy was also evaluated negatively (3), showing that new businesses face a considerable regulatory and fiscal burden that can hinder their development.
Likewise, entrepreneurial education in schools was rated as very poor (2.6), evidencing a significant gap in the training of entrepreneurs from basic education. Finally, although the priority that new businesses give to sustainability was rated as good (score 6.7), more sustainable business practices still need to be encouraged.
“Although there is social support for entrepreneurship in Costa Rica, the government can do much more in terms of policies to support new businesses, reducing the costs and regulation faced by new ventures and improving the state of entrepreneurial education in schools. More support in accessing entrepreneurial financing would also be useful,” the report states.
The best country in Latin America for entrepreneurship is Chile, followed by Uruguay and Mexico. Venezuela is considered the worst with an average of 3.5. At the global level, the United Arab Emirates, Lithuania and Taiwan are in the lead. The GEM is the largest research study on entrepreneurship in the world and was started in 1999 by Babson College and London Business School.
