MIT Solve

Solution Overview

Solution Name:

Simple SAS.

One-line solution summary:

Productized service supported by preexistent technology, which allows people to formalize their business through assistance and education.

Pitch your solution.

Entrepreneurs in Ecuador (and all around Latin America) are pushed into informal economy by a poorly designed-lacking of dignity system which excludes them on a daily basis. Nevertheless, the rate of new and nascent entrepreneurs and startups continues to raise despite the fact that the failure rate remains constant year after year. These ratios are one of the reasons which provokes and increases the gap between rich and poor, perpetuating social inequalities because those entrepreneurs who start with little means or access to finance lose everything in the process.

To face the described problem, we designed a two phases productized service supported by preexistent technology, which allows any entrepreneurship to be part of the formal economy in an easy, comprehensible, low cost way.

What specific problem are you solving?

The problem we work on is summarized as follows: starting a business in Ecuador (and most Latin American countries) has barriers that increase the level of difficulty on the entrepreneurship path, excluding entrepreneurs from the formal economy and depriving them from the opportunity of enjoying a life full of dignity and happiness.

In fact, starting a business in countries like Ecuador can be very complicated due to several reasons such as: 1) difficulties on finding and identifying updated information about what bureaucratic requirements are necessary to comply; 2) lack of financing; 3) very low levels of digital literacy to compete. In 2019, not being able to achieve economic sustainability and lack of financial opportunities caused more that 70% of entrepreneurship failure in Ecuador according to Global Entrepreneurship Monitor.

It is the hard truth that here, the big majority of entrepreneurs start a business by necessity and not because of the identification of a business opportunity but it should not be a reason for them to fail without remedy.

What is your solution?

Two phases productized service supported by preexistent technology:

1) Agile SAS AUC or CC Incorporations (We work this phase under our FITBA strategy: from Incorporation to Bank Account in 5 days) – “Constitución de AUC or CC” in Spanish.

After the first stage is completed, a questionnaire is sent in order to characterized the person as a ideal client for phase two. If he/she does not fit in the attended market, refer him/her is referred to our ally, Contapp, an accountancy platform.

2) First Milestone Package (Paquete Primer Hito in Spanish), includes: low cost annual accountancy, municipal licenses, trademark registration, guide to electronic signature and billing or firms and first contracts).

Who does your solution serve, and in what ways will the solution impact their lives?

Entrepreneurs who have an informal business for more than 3 months and less than 3 years in Latin America.

By 2022,

SAS incorporations in Ecuador (3000 entrepreneurships financially included).
2400 entrepreneurships with financial order (accountancy)
5000 New Shareholders educated about circular economy, sustainability and basic digital literacy.

Interviews with nearly 200 of our clients have been conducted, who add financial disorganization and ignorance of how to comply with regulations to that combination. It goes without saying that such clutter and ignorance are directly related to the subsequent lack of funding.

Which dimension of the TPrize Challenge does your solution most closely address?

Offer training and flexible curriculum in hard (technical) and soft (social and interpersonal) skills, preparing people for the work of the future

Explain how the problem you are addressing, the solution you have designed, and the population you are serving align with the TPrize Challenge.

Starting a business in countries like Ecuador can be very complicated due to several reasons such as: 1) difficulties on finding and identifying updated information about what bureaucratic requirements are necessary to comply; 2) lack of financing; 3) very low levels of digital literacy to compete. In 2019, not being able to achieve economic sustainability and lack of financial opportunities caused more that 70% of entrepreneurship failure in Ecuador according to Global Entrepreneurship Monitor.

In what city, town, or region is your solution team headquartered?

Quito, Ecuador

What is your solution’s stage of development?

Growth: An organization with an established product, service, or business model rolled out in one or, ideally, several communities, which is poised for further growth.

Explain why you selected this stage of development for your solution.

Favorable results in the development stage are given by the commercialization of the product since 120 ventures have been formalized and have benefited more than 300 shareholders. It has been tested in several cities in Ecuador (Quito, Ambato and Guayaquil).

Who is the Team Lead for your solution?

Camila Loaiza, team lead