Law 19,820 relating to the promotion of entrepreneurship declares the promotion of entrepreneurship to be of national interest and establishes various incentives and facilities for entrepreneurs.
Objective of the law:
Article 1 of the Law 19,820 determines that the promotion of the various undertakings will be of national interest. This promotion is sought through the creation of an entrepreneurial ecosystem and the development and dissemination of an entrepreneurial culture, promoting and developing enterprises and entrepreneurs.
Among the objectives of the law 19.820 are:
- Contribute to productive economic development by stimulating the creation of companies that are sustainable, competitive, generate employment and have a differential value.
- Consolidate a State policy for the promotion of entrepreneurship that includes the institutional frameworks of reference for the definition of policies and the design and implementation of the respective programs and instruments.
- Promote the development and articulation of the entrepreneurial ecosystem, associative ventures and collaboration among entrepreneurs.
- Motivate personal and group proactivity, the entrepreneurial spirit and the development of an entrepreneurial culture in the most diverse areas, contributing to the formation of autonomous and supportive individuals, willing to work collaboratively and interested in innovation, creativity and the identification of new challenges.
- Promote the link and articulation between the entrepreneurial ecosystem and the educational system at all levels, in order to develop the culture of entrepreneurship and disseminate the fundamental skills for the entrepreneurial task.
- Improve the environment for the development of enterprises and entrepreneurs, including the removal of obstacles and restrictions, and the adaptation of policies, programs, instruments and procedures to the characteristics and needs of the different types of enterprises.
- Facilitate the scaling up of ventures and their internationalization, including access to financing.
- Promote the national scope of entrepreneurship development in order to promote equal opportunities of access to support mechanisms for entrepreneurs in any part of the territory.
On the other hand, the regulation determines that the actions carried out by both public and private institutions in the area of entrepreneurship promotion will be coordinated by the National System of Productive Transformation and Competitiveness.
The Ministerial Cabinet of Productive Transformation and Competitiveness will have among its attributions: (a) to propose objectives, policies and strategies to promote entrepreneurship; (b) to define the guidelines, priorities and goals of the National System of Productive Transformation and Competitiveness regarding the promotion of entrepreneurship, and to monitor and evaluate the actions carried out; (c) to report annually to the Legislative Power about the annual plan of activities related to the promotion of entrepreneurship and the results achieved during the previous fiscal year in relation to the proposed objectives.
Creation of the National Entrepreneurship Plan
The regulation establishes the so-called National Entrepreneurship Plan. This plan will have multi-year projects aimed at the consolidation of the entrepreneurial ecosystem, the development and dissemination of the entrepreneurial culture, the promotion and development of entrepreneurship and entrepreneurs. In addition, it will include an Integral Plan for the Development and Dissemination of an Entrepreneurial Culture that will promote personal, associative and cooperative attitudes and the necessary skills for the development of an own entrepreneurship, in conjunction with the educational system and through other awareness-raising actions.
the objectives are: (a) to stimulate the entrepreneurial attitude as a way of associating personal and collective fulfillment with the ability to identify challenges and define and implement strategies to achieve them, from the most diverse areas of activity; (b)to introduce concepts of entrepreneur, businessman and company; (c) to explain and convey the role of the entrepreneur in the creation of companies and their decisive role in increasing added value, economic growth and the generation of new jobs; (d) establish the link between the entrepreneurial attitude and the enhancement of innovation capacity in general, and introduce the role of innovation and differential value in the process of creating and expanding sustainable and competitive enterprises; (e) identify and develop entrepreneurial attitudes, explaining and conveying the concepts of initiative, leadership, creativity, search for opportunities, among others; (f) incorporate and promote the concepts of business ethics, good business practices, corporate social responsibility, positive social and environmental impact, good labor practices and decent work.
On the other hand, the sixth article creates the Entrepreneurship Advisory Council to provide advice, collaboration and joint monitoring of actions aimed at promoting entrepreneurship. This council will be in charge of informing on policies, programs, instruments and projects aimed at the promotion of entrepreneurship, identifying eventual gaps in the system for the promotion of entrepreneurship and evaluating alternative solutions, cooperating in the development and dissemination of the entrepreneurial culture, promoting the preparation and professionalization of entrepreneurs, identifying training needs and other support services for entrepreneurs and entrepreneurship, and contributing to the national and international positioning of the Uruguayan entrepreneurship brand Uruguay Emprendedor.
This advisory council shall also consolidate a space for dialogue and agreement for the construction of a harmonious and complementary system for the promotion of entrepreneurship that fosters collaboration between public institutions, between private institutions and between public and private institutions.
Incentives for entrepreneurs established in the regulations
It should be noted that the regulations establish certain incentives for entrepreneurs and enterprises in our country. These are:
- The Simplified Joint Stock Companies, mostly known as SAS. This is a type of commercial company that provides greater flexibility, agility and lower costs for entrepreneurs, making access to a corporate structure more accessible to entrepreneurs.
- The provision in favor of entrepreneurs of a crowdfunding system through the implementation of crowdfunding platforms. This consists of the entrepreneur publishing his project on a website and soliciting investors who are willing to carry out his project.
- The creation of a specific biotechnology stimulus fund aimed at financing capital contributions for the start-up or expansion of new ventures related to these topics.
- The financing of entrepreneurial projects whenever required.
By means of the Simplified Joint Stock Companies and the possibility of resorting to a collective financing system, the Uruguayan government seeks to adapt to the advances that have taken place worldwide in other countries over the years in relation to entrepreneurship.