Three legal ideas about entrepreneurship in Colombia

Entrepreneurship is one of the bases of the economic model of the government of Colombia for the period 2018-2022. The Colombian economy has been based on agricultural raw materials such as coffee and oil exports. From the legal point of view it is important to bear in mind that changing the model requires adjustments that can facilitate the success of entrepreneurs and the government.

Entrepreneurship is one of the bases of the economic model of the government of Colombia for the period 2018-2022. The Colombian economy has been based on agricultural raw materials such as coffee and oil exports.

From the legal point of view it is important to bear in mind that changing the model requires adjustments that can facilitate the success of entrepreneurs and the government.

1.- Financial resources

The financing of the entrepreneurship programs may come from the private sector but the government will also disburse public resources to encourage entrepreneurship and support the initial stages of the new companies. It is important that there is coordination among the different public entities that currently have programs aimed at innovation, science and technology.

The financing of the entrepreneurs depends on the traditional resources of the financial sector but the criteria of financial risk for the loans does not always favor them. It is important to strengthen the crowdfunding schemes since the recent regulation in Colombia seems rather shy in the objectives and in the means to achieve the financing of the ventures.

2.- Intellectual property

In the case of public resources that are used in private enterprises, it is important to keep in mind that the protection of intellectual property rights must be the guarantee for the state to have a return on investment. In the event that the venture becomes a consolidated company and for example sold to a local or foreign private investor, there should be a participation of the Colombian state in the profits or in the royalties obtained by the exploitation of the business model.

The return of the investment in science and technology within the companies of the entrepreneurs is composed of the protection of intellectual property, the effective capacity of direct or indirect exploitation of the rights over the intangibles and the real impact on business productivity

3.- Legal and Contractual Ecosystem

The fulfillment of the contracts and the possibility of requesting compliance with them is the legal basis for a healthy and prosperous ecosystem of entrepreneurship. Entrepreneurs must adopt contractual schemes with suppliers, distributors and third parties to integrate with international supply chains of goods and services. Colombia must make progress in updating the rules of private law for the 21st century and in achieving a more efficient judicial system. In the short term, arbitration is the most useful method for entrepreneurs but it is important to take into account the costs associated with it.

The bankruptcy and restructuring of entrepreneur companies must guarantee the rights of creditors but also be flexible and agile.

Three essential subjects for the entrepreneur are having the financial resources for their projects, adequately protect their business ideas and that there is a legal framework for their contracts and even for possible bankruptcy. All these roads go through the law.