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ABC Entrepreneurship Law

After going through different debates in the Third Joint Commissions of the Senate and House of Representatives, and in the plenary of the House of Representatives and the Senate of the Republic,

the Entrepreneurship Law was approved. The purpose of this law is to establish a regulatory framework that favors entrepreneurship, growth, consolidation and sustainability of companies.

The Law incorporates five strategic axes:

  1. Differentiated rates and simplification:

This axis seeks to guarantee a reduction in tariffs and measures to facilitate the incorporation and operation of companies. Such as the Modification of INVIMA Rates, with differentiation for SMEs and payment exception for micro-enterprises.

  1. Public Procurement:

The second axis aims to expand markets and promote MSMEs and enterprises by facilitating their access to the public procurement market.

  1. Financing:

Its objective is to facilitate entrepreneurs’ access to financial instruments, by means of:

– Financial inclusion of microbusinesses to microcredits

– Tax incentives to promote donations to the ecosystem through iNNpulsa

– Modification of FNG’s corporate purpose to broaden its product portfolio and offer guarantees to other sources of financing.

  1. Institutionality:

This axis seeks to update the regulatory framework to institutionalize entrepreneurship. In such a way that it adjusts to the needs of entrepreneurs, strengthens the National Competitiveness and Innovation System and regional ecosystems.

  1. Education and skills development for entrepreneurship:

With this item, the State intends to facilitate and encourage the appropriation of entrepreneurship and entrepreneurial culture in the country through schools and higher education institutions.

Once these 5 axes have been exposed, it is possible to affirm that the Entrepreneurship Law becomes the main catalyst for the National Entrepreneurship Policy to become a fact. In addition, thanks to this new law, Colombia has become a regional benchmark as an entrepreneurial nation.

Finally, it is important to point out that this regulatory framework gives a leading role to entrepreneurs, who face different challenges caused by the pandemic; it also promotes entrepreneurship, growth, consolidation and sustainability of micro, small and medium-sized enterprises.

Sources:

– Innpulsa Colombia (2020). ABC Entrepreneurship Law. Retrieved from: https:%20%

– Redacción Revista Dinero (December 11, 2020). The Entrepreneurship Law has already been approved to encourage the birth of start-ups. Money. Retrieved from: https://www.dinero.com/emprendimiento/articulo/ley-de-emprendimiento-en-colombia-en-que-consiste-y-que-beneficios-traera/309504

Written by: Alejandra Cardona M.

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