Following on from the recent blog by my colleague Sylwia Nowak providing an overview of the key terms of entrepreneurship, I want to build on the blog post to examine the emerging and dynamic technology scene in Peru.
A supportive business environment and government encourages tech investment
The Peruvian technology industry has been growing at a rapid pace, as has the broader economy. The recent election of President Pedro Pablo Kuczynski (or “PPK” as he is more commonly known), promises to continue to foster the pro-business environment. Peru has benefited from 20 years of strong economic growth; the country is regularly rated as one of the most attractive nations in Latin America for doing business by the World Bank; and it is an attractive destination for foreign direct investment where in 2015 Peru led Latin America with respect to FDI as a percentage of GDP.
However despite this, there are some challenges, such as relatively low levels of R&D expenditure compared to many other countries. The Presidency of PPK appears to recognize this, and has announced that investment in science, technology and innovation will be a priority of his government’s administration. For example, there are plans to create national centers for innovation and technology.
Meanwhile beyond specific government actions, the dynamism of Peruvian tech talent is becoming increasingly visible.
A rising startup scene
Just as the city of Lima becomes known for its art, bohemia and gastronomy, there’s also a rising entrepreneurial scene in Lima. For example Wayra Peru, which provides support to technology startups has been presented to by more than 4,500 potential companies. Reflecting this entrepreneurial spirit, Belatrix recently held a hackathon in Lima, where more than 100 programmers gathered at the San Martin de Porres University, to participate in the 5th edition of “Hackatrix”, Belatrix´s hackathon. More than 20 teams competed in the coding marathon.
The Neo Group, which compares and analyzes different regions and countries, stated that Peru, despite suffering from some shortages of technical talent as demand grows rapidly, has a “thriving” IT industry. To help solve the rising demand for Peruvian technical talent, and avoid shortages of talent, there is a growing infrastructure to provide people with the technology skills and training. For example, in Lima alone there are approximately 40 universities with technical programs. Code factories are also emerging, which help young individuals learn how to code, and provide another entry point for people into the thriving technology scene. This is one of the reasons Belatrix Software recently expanded its delivery center in Lima, and now has 150 software engineers working in the city.
It’s a dynamic time in the Peruvian tech industry, and here at Belatrix we’re excited to be at the forefront of developments.