Argentina’s history is one of extremes — a nation that has swung from prosperity to crisis and back again yet always demonstrated an uncanny ability to rebuild and reinvent itself. In the early 20th century, Argentina was among the top 10 wealthiest nations globally, thanks to its fertile agricultural sector, booming trade, and a forward-thinking, immigrant-rich society. While most cities and countries look to “tech” or funding to fuel startups, it’s actually this legacy that leaves the ideal and indelible mark, fostering a culture of resilience and adaptability essential for entrepreneurship.
Part of that culture necessary, is overcoming challenges, bringing us to why Argentina is today situated to thrive in this regard; the late 20th century saw the country grapple with periods of economic turmoil, hyperinflation, and political instability. These challenges cultivated a breed of entrepreneurs who thrive in uncertainty. Argentina’s reputation as a fertile ground for innovation is rooted in its people’s ability to pivot, innovate, and create value despite constraints—a hallmark of successful entrepreneurial ecosystems worldwide.
Periods of economic instability in Argentina, such as the hyperinflation of the 1980s and the financial crisis of 2001, created an environment where traditional industries struggled, and individuals had to turn to creative solutions for survival. The arts, media, and design industries flourished as Argentinians tapped into their cultural richness to generate value. Buenos Aires became a hub for world-class advertising, film production, and graphic design, driven by the need to communicate compellingly in uncertain times. Paramount in appreciating this having happened, is that subtly alluded to already, most regions of the world make the mistake of believing that entrepreneurship is fueled by tech (or STEM education) and sufficient funding. This focus throughout the world is what causes startup communities to languish behind Silicon Valley or cities like Austin, because a stool on which founders sit having only two legs, is a stool that tips over; evident in the world’s most successful ecosystems, is the paramount role of the liberal arts and media. Argentina is situated unlike most of the world in that it’s history in both resilience and creativity, furrows the field in which technology and capital can succeed.
Not all bad, economic instability often forces governments to address critical infrastructure needs, and in Argentina, energy independence became a key focus. Cleantech and renewable energy initiatives were born out of necessity as the country sought to reduce its reliance on expensive energy imports. Argentina’s vast natural resources, including abundant wind in Patagonia and high solar potential in the northwest, offered a way forward. Programs like the RenovAr initiative, launched in 2016, incentivized investment in renewable energy projects. Despite financial challenges, the program attracted international interest, positioning Argentina as a leader in Latin America’s renewable energy sector. By 2024, the government under President Milei has signaled a continued commitment to deregulation in the energy sector, aiming to lower barriers for private investment in cleantech.
Before we get there, let’s stuck with why Argentina has fertile ground. Their financial crisis of the early 2000s devastated Argentina’s banking system, pushing consumers and businesses to adopt alternative means of commerce. This disruption set the stage for e-commerce to thrive. MercadoLibre, founded in 1999, emerged as a regional leader by providing a reliable digital marketplace amidst the chaos. Its success demonstrates how economic instability can spur innovation when traditional systems fail to meet public needs. The growth of ecommerce was also supported by widespread mobile penetration and Argentina’s highly educated population, which adapted quickly to digital tools. By solving problems like unreliable payment systems and limited consumer access to goods, companies like MercadoLibre turned crisis into opportunity, building scalable solutions that now dominate the Latin American market.
That unreliable payment system brings us to overcoming that as well as the challenges Argentina’s history of economic exclusion, marked by high inflation, volatile exchange rates, and limited access to credit. Millions of Argentinians, long excluded from traditional banking systems, embraced digital financial tools that offered convenience, security, and accessibility. Startups like Ualá have capitalized on this need, offering simple yet effective solutions like prepaid cards and mobile banking apps, demonstrating how fintech can address systemic failures, providing services that help individuals and businesses navigate financial instability.
Government’s Role in Building Modern Economies
Let me diverge a bit to point out that a government can be part of the solution or part of the program, and in either case, entrepreneurs will find a way forward but what that means is that communities need to be working with their government, and experts like me who work in economic development for startups, to keep government out of the way. Economic turmoil often forces governments to focus on the foundational elements of a modern economy: infrastructure, financial systems, and digital access. In Argentina, successive administrations recognized the need to create conditions for innovation and entrepreneurship, even in difficult times. Key actions included:
- Digital Infrastructure: Investments in internet access and mobile networks expanded connectivity, enabling the rise of e-commerce and digital banking.
- Legal Frameworks: Policies like the 2017 Entrepreneurs Law simplified company formation and provided financial incentives for startups.
- Support for Emerging Sectors: Government programs targeted renewable energy, creative industries, and technology as areas with high growth potential.
That Entrepreneurs Law, by the way, is worth learning more about. Tax cuts and loans, incentives for STEM professionals, incubators, and infrastructure, brought about through Argentina Delivers, U.S. Embassy of the Argentine Republic, Argentine Investment Trade and Promotion Agency, and Argentina’s Ministry of Foreign Affairs, Trade, and Worship, leads by example showing how governments can make wise investments that enable people to start companies that change the world (and *create* jobs).
Under President Milei, this trend has continued with a focus on deregulation. By reducing bureaucratic red tape and allowing markets to operate more freely, Milei’s administration is doubling down on the belief that innovation flourishes when individuals and businesses have the freedom to solve problems.
Argentina’s journey shows that adversity can be a catalyst for innovation. Economic turmoil and political instability often force people and governments to find creative solutions, prioritize essential industries, and embrace new technologies. In Argentina, these conditions gave rise to thriving creative industries, a renewable energy revolution, and transformative fintech and e-commerce ecosystems. With a government now committed to liberal principles of economic freedom, Argentina is poised to continue its legacy of innovation, proving that even in the toughest conditions, entrepreneurship can not only survive but thrive.
Engineering, Technology, and Invention: Argentina’s Strengths
Argentina’s influence on global innovation today goes well beyond its renowned agricultural exports and tango-infused culture. It is a country that has contributed meaningfully to engineering and technology. Primarily:
- Nuclear Energy: Argentina is one of the few countries in the world with indigenous nuclear reactor technology, developed through INVAP, an Argentine engineering and research firm. INVAP’s advancements in space exploration and nuclear energy exemplify Argentina’s deep technological expertise.
- eCommerce and Fintech: Argentina’s tech ecosystem is robust, led by companies like MercadoLibre, the eCommerce juggernaut reshaping retail across Latin America. Meanwhile, Ualá has tackled financial inclusion, bringing millions of Argentines into the formal economy with its mobile banking solutions.
- Creative Industries: Argentina’s film and advertising industries are world-renowned, reflecting a creative spirit that lends itself to innovation in marketing and media tech.
Argentina’s government has also nurtured advancements in biotech, renewable energy, and blockchain. These industries benefit from a highly educated workforce and a culture that values creativity, independence, and bold thinking.
Libertarian Policies and the Power of Deregulation
Under President Javier Milei’s libertarian leadership, Argentina is embarking on a bold experiment in economic freedom. Milei, an economist and outspoken advocate for free markets, has dismantled regulations, privatized industries, and reduced government spending in his efforts to unleash Argentina’s entrepreneurial potential.
Globally, the correlation between economic freedom and entrepreneurial success is well-documented. The Index of Economic Freedom by The Heritage Foundation consistently shows that countries with higher levels of deregulation and market freedom outperform their heavily regulated counterparts in innovation, GDP growth, and entrepreneurial activity. For example:
- Hong Kong and Singapore have long been ranked as two of the freest economies globally and are hubs for entrepreneurial activity, boasting high levels of startup formation and venture capital inflow.
- Ireland, another deregulated economy, has become a magnet for global tech giants like Google and Facebook while fostering its own thriving startup scene.
Argentina, with its deep pool of skilled labor and a renewed focus on economic freedom, is poised to follow suit. Milei’s reforms have included simplifying the tax code, eliminating bureaucratic hurdles for starting businesses, and reducing barriers to foreign direct investment—critical steps in encouraging both local and international entrepreneurship.
As a result, the venture capital scene in Argentina has grown significantly over the past decade, with local and international investors recognizing its potential. Funds like NXTP Labs, Draper Cygnus, and Kaszek Ventures have played pivotal roles in fueling Argentine startups. Kaszek, for instance, is one of the largest and most successful VC firms in Latin America, having invested in MercadoLibre and other regional unicorns.
Accelerator programs, such as Startup Buenos Aires and IncuBAte, provide entrepreneurs with the mentorship, funding, and networking opportunities to scale globally. Meanwhile, government-backed initiatives like the Entrepreneurs Law offer grants and financial incentives for startups focused on high-impact industries like technology and sustainability.
Cultural Richness Drives Economic Opportunity
Entrepreneurs are not only drawn to Argentina for its economic prospects but also for its unique culture and quality of life. Buenos Aires, often called the “Paris of South America,” is a bustling metropolis blending European elegance with Latin American vibrancy. The country’s renowned cuisine, wine regions, and breathtaking natural landscapes—from Patagonia’s glaciers to Iguazú Falls—offer a lifestyle that is hard to match.
Argentinians themselves are celebrated for their creativity, resilience, and passion. These qualities make them ideal collaborators in any entrepreneurial venture, with a mindset that embraces problem-solving and innovation.
In 2024, Argentina and the United States began exploring a free trade agreement under the leadership of President Milei and the incoming Trump administration. This agreement signals Argentina’s intent to deepen its ties with major economies, leveraging its vast resources and strategic location. Such a pact could enhance Argentina’s export capabilities while creating opportunities for cross-border startups in agritech, AI, and fintech.
Free trade agreements historically reduce barriers for entrepreneurs, creating access to larger markets and encouraging foreign investment. For Argentina, this represents a critical step in attracting global businesses and fostering its own startup ecosystem.
President Milei has ignited a new wave of entrepreneurial optimism but it’s the history of the country, both the spirit of resilience, the clear industry strengths, and the culture of creativity that teaches the rest of the world what enables liberal government to foster entrepreneurship. Its deregulated environment, thriving venture capital scene, and vibrant cultural fabric make it an ideal destination for innovators seeking a dynamic and welcoming ecosystem.
Given Argentina’s history of resilience and innovation under pressure, what more can entrepreneurs and investors learn from its successes and failures — and how might these lessons shape the way we approach building businesses in volatile or deregulated environments? What is your experience (or your struggle) in your country?
Consider how Estonia embraced digital transformation post-independence, becoming a tech hub. Argentina’s entrepreneurial spirit, paired with Milei’s reforms, might replicate this success. Focus on building robust digital infrastructures and international partnerships to boost innovation.
Mark Donnigan I need to visit Estonia
Plus they have Great Steaks, Red Wine & Rugby what’s not to like!
Juan Ignacio G. What you think?
From an economic perspective, in my opinion, a change was necessary. Many years of economic decline, inflation, loss of purchasing power, high tax burdens, and the inability to import products. And that’s without even considering the social factor. This is what Milei promised to fix. Whether it works or not remains to be seen, but at least he’s delivering on what he said during his campaign, which 55% of the country voted for. Let’s hope everything goes well and Argentina improves! ?
Juan Ignacio G. the entrepreneur in me can’t help but look at government and always think that when things are going right, a change is necessary. Troubling to me is in the U.S., the answer to failing government offices or policies, or corrupt politicians, is increasingly “they’re doing the best they can, they just need more support,” rather than tossing it out and trying something different.
If Milei can utilize and learn from the mistakes of the privatization efforts made in the ‘90s; continue implementing & modifying strong regulations; and focus on foreign investment & modernizing sectors suggested in your article (nuclear energy, wind, technology), Argentina can avoid past errors. It is possible, as seen with the modernization of South Korea, Taiwan and other countries utilizing foreign investment, reinvestment into human capital and export-oriented industrialization for sustainable growth. With Milei building relationships with Trump to further free-trade in the States, meeting with leaders, such as Meloni, and privatizing state-owned enterprises, he is positioning Argentina to attract foreign investment and open new markets. They definitely have a shot!