Contxto – The Innóvate Perú Summit closed on a very positive note last Friday. It called for its 8th generation (8G) of entrepreneurs to participate in the Startup Perú contest.

Like its previous edition, there are two categories in which participants can compete. The group under which an entrepreneur may apply depends on the phase in which a project or startup finds itself.

For anyone seeking to validate a business model they have in the works, Startup Perú may grant up to PEN$50,000 (almost US$15,000) in the category of Innovative Entrepreneurs. 

Or, as an established startup, it may be eligible for the Dynamic Entrepreneurs category. In order to do so, it must be less than five years old. It also cannot have made over PEN$120,000 (around US$35,000) within the last year. If they fulfill these requirements they may just get that funding for up to PEN$140,000 (US$41,000).

Stimulating startups for survival

Peruvian authorities, like any reasonable government, want to see their country’s startups succeed for multiple reasons. Fiscally speaking, whatever sales are generated by these businesses return to the government’s coffers. 

A coordinator on behalf of Innóvate Peru reported earlier this year, that the Andean country made over PEN$450 million (around US$132.5 million) through startups sales, of which, 20 percent came back to the government as taxes. 

However, there is still a lot of ground to cover. Consider the 10 percent survival rate of Peruvian startups within their first year of founding. As a government-funded project, no doubt Startup Perú provides an invaluable lifeline for these budding businesses.