Guatemalan entrepreneurs face losses from insecurity and AI challenges

Guatemala boasts a dynamic entrepreneurial spirit, ranking sixth worldwide in early-stage entrepreneurship and third in Latin America, according to the Global Entrepreneurship Monitor (GEM) 2025-2026 report. Approximately 4 million Guatemalans, or 37% of the population, are engaged in entrepreneurial activities, with 2.7 million in early stages and 1.2 million with established ventures.

The report, presented by the Kirzner Entrepreneurship Center at Universidad Francisco Marroquín (UFM), highlights a strong belief in entrepreneurship, with 95% of Guatemalans viewing it as a good career option and 74% confident in their abilities to start a business. Most new businesses begin with modest investments, typically between Q1,000 and Q10,000, with entrepreneurs largely relying on personal savings due to limited access to formal financing.

However, significant hurdles impede business growth. A substantial 66% of ventures operate informally, restricting access to support programs and expansion opportunities. Furthermore, 74% of entrepreneurs focus their sales within their own municipality, limiting market reach. Insecurity remains a critical issue, with nearly a quarter of entrepreneurs falling victim to crime in the past year, incurring average losses of Q17,000, a sum that often surpasses initial investment costs.