A report has shown a significant increase in the amount of new businesses created in Colombia in the first three months of 2014.
The report released by Confecamaras, Colombian Confederation of Chambers of Commerce, said that 86,980 new businesses had been created in the first quarter of 2014. This marked a 28.7% increase on the same time period in 2013.
This includes sole traders, share-holding companies and trusts.
The areas that grew most rapidly were wholesale and retail trade, accommodation services and food, manufacturing, professional, scientific and technical activities as well as construction.
Colombia’s economy has been growing rapidly and has been predicted to grow by 4.5% in 2014 according to the IMF.
MORE: IMF estimates Colombia’s economy to grow 4.5% in 2014
Julian Dominguez Rivera, president of Confecamaras said, “we must carry on redoubling our efforts, in both the government and the private sector, to continue this good dynamic and ensure that it is translated into new formal jobs for Colombians.”
MORE: Tax reform helping drive Colombia’s ‘promising’ economy: IMF
In 2008, 74.2 % of all Colombian labor force was considered informal, that is, not regulated or taxed by government. This left many without health or employment benefits. By 2011 Colombia still had one of the highest unemployment rates in Latin America, according to an international labor report.
To combat this, the tax reforms formulated in 2012 and introduced in January 2013 reduced the tax paid by companies for each employee (payroll tax) and replaced it with a tax on the profits they earn by making use of that labor.
MORE: Colombia passes progressive tax reform