ASEA: "We are an ecosystem of entrepreneurs!"

“We believe that the next economic revolution will come from innovation promoted by the entrepreneurs,” says Ezequiel Calcarami, a mobility/transportation entrepreneur and the Vice President of non-profit, ASEA (The Association of Entrepreneurs of Argentina). “But in Argentina’s government instability, lack of funding, societal attitudes and mountains of red tape are getting in the way.” ASEA saw this as an opportunity to gather all entrepreneurial communities and entrepreneurs – no matter the industry or stage, to act as one-voice and address government issues. “The only way we can change circumstances in Argentina is if we join together,” affirms Ezequiel.

ASEA is a quasi-entrepreneurial lobby started in September of 2014. Already, they’ve gathered 1,200 entrepreneurs and by year-end they expect to reach 10,000. By joining together, ASEA hopes to show the value of entrepreneurs to the Argentine community and economy. In Chile, ASEA’s sister organization ASECH, has already cut down red tape and increased funding for entrepreneurs. For example, in Chile you can now open a business within 24 hours (as opposed to several months). Here in Argentina, ASEA is still young but is looking to make a huge impact fast.

For example, they’ve created the ASEA Bill that addresses barriers to entrepreneurs in Argentina including a simplified model for limited companies, the entrepreneurial corporation that can be created with one partner and the endorsement of limited taxation for the first five years of the company’s existence. “We’ve had meetings in government to get it passed and have been discussing our cause with all presidential candidates (general elections occur in October 2015),” notes Francisco Torres Vidal, COO of ASEA. “We are trying to generate value for entrepreneurs and Argentina as a whole.”

While Ezequiel notes that Argentina is an important country in terms of generating new and creative entrepreneurs, “it’s not pro entrepreneurship.” Bureaucracy is a huge problem. For example, to form a company, the government makes entrepreneurs jump through hoops to receive clearances and some activities are double or triple taxed. “It could take months to form a company,” says Ezequiel. “It’s tough and it’s distracting for an entrepreneur who needs to focus on his business.” Furthermore, lack of available funding from both private investors and the government makes it difficult to accelerate or even start a company. “Just getting a credit card or checking account at a bank as an entrepreneur can be tough. The banks don’t want to take the risk,” states Ezequiel.

And it’s not just the red tape and lack of funds that inhibit entrepreneurial growth; it’s also the society’s attitude towards failure. “In the US, failing in business is part of the entrepreneurial process,” says Ezequiel. “You still cheer for failures because you know that the entrepreneur will be better prepared for success next time. But in Argentina, that’s far from the case. Argentines love to flock to the winners but run away at the sign of failure. To fail is to also fail socially.”

Over the next five years, ASEA hopes to be at 100,000 members. “At 10,000 members the government and the people might listen to us. But at 100,000 members the government and people MUST pay attention,” says Ezequiel. “We are an ecosystem of entrepreneurs. We are trying to change Argentina for the better. It is not going to be easy, but together we can change things.”

Vistage: Pushing Entrepreneurial Development Through Peer Advisory Groups

““Argentines are forced to be creative and continuously innovate to keep up with a constantly changing environment.””

— Alejo Canton, Vistage Argentina

Snug in the north end of a posh Buenos Aires neighborhood lies Vistage Argentina. Vistage is an international organization that brings together groups of successful executives across a broad array of industries, forming peer advisory groups where members can mentor one another to improve their businesses. “When you lead a company,” says Alejo Canton, President of Vistage Argentina,“It’s a fairly isolated position. You have a HUGE responsibility on your shoulders and the decisions you make determine whether or not your company grows.”

Alejo goes onto explain that it’s often difficult to share problems or opportunities with employees whose livelihoods are closely tied to the outcome and it’s also difficult to share those situations with non-executives who may not understand. “So we bring all of the executives – entrepreneurs, CEOs and presidents together into a group. They don’t compete with one another and they can give completely unbiased advice. It’s very powerful and it’s literally helping members grow their businesses.”  

What exactly is a peer advisory group? A common example of a peer advisory group is Alcoholics Anonymous (AA). AA is a peer advisory group where members connect with each other, form a community, and collectively stay sober while sharing experiences. Vistage works in a similar fashion where executives can come together, form a community of like-minded professionals and work towards the common goal of improving their businesses and personal lives.

After purchasing the license to Vistage Argentina 15 years ago, Alejo grew Vistage from 0 to 900 clients. So, when it comes to the power of peer advisory groups like the one offered by Vistage, Alejo is an authority on the subject. He first heard of Vistage while attending UCLA business school for his MBA. Vistage had an on campus student program for wanna-be entrepreneurs. “I knew I wanted to be my own boss and when I found out Vistage didn’t have a presence in my native Argentina, I jumped at the opportunity to create one.”

The aspect of Vistage Alejo loves best is that he’s contributing to making Argentina a better place. Alejo believes that small, medium and large companies contribute more to the economy and employment than any other organization – including the government. By helping executives grow their businesses, Alejo is not just making a difference for the executives but for all stakeholders involved. “At Vistage, we impact many. I’m making our society a better place, while also improving my own personal and professional development.”

However, Vistage doesn’t just improve the local economy through its executives, Vistage Argentina is looking to tackle three key growth initiatives over the next five years that will mean serious pay-offs for the Argentine economy and society. In five years, “our goal is to grow to 2,000 members and be recognized as a very social company,” explains Alejo, who points to B Corps as a model for social excellence. “We want to be a B Corp in spirit if not in name.” In addition to growing its membership, Alejo plans on expanding their NGO (not-for-profit) groups (they currently have one which started in 2015), and by increasing the amount of donations they give from 25% of profits to 50%. “Eventually, I’d like to donate up to 75% of profits to local charities.”

When we asked for a success story demonstrating the power of peer advisory groups, Alejo had many to share. One of our favorites was when a Vistage member and CEO of a mid-size firm past away from cancer. The executive didn’t have a contingency plan in place and none of the current employees understood the company well enough to fulfill the CEO’s shoes. That executive’s peer advisory group came together to tutor his daughter – a mid level manager at the company. Because they understood the company and the roles the past CEO faced, they were able to save the company and guide his daughter into becoming a successful leader.  Success stories like this one clearly demonstrates why Vistage Argentina has outperformed every branch outside of the USA.

Despite Vistage’s success, one of the key things that keeps Alejo up at night is the threat to his business model, which relies on facilitators known as “chairman” being contractors for Vistage; not employees. Alejo points to Uber as a leader in the argument on contractors vs. employees.

Uber considers its driver’s to be independent contractors, ultimately avoiding the sticky situation of providing health care and expenses to contractors, but also allowing the freedom of working when and as long as their drivers prefer. Recently, Uber has been facing threats to its business model and already the California Labor Commissioner has ruled that the drivers are in fact employees. Just like Uber, Vistage Argentina is facing the same threat. If (and it has happened in the past) their independent contractors claim to be direct employees, the Vistage model could be compromised and lead to major financial straits. While this model has flourished for Vistage over the past 15 years, Argentine law is fickle and should it go to court, it’s unclear which way the law would judge.

And yet, Alejo also believes that Argentina’s instability creates an environment for entrepreneurship. In his gut, Alejo believes Argentina to be a very entrepreneurial country in part because of its instability. “In Argentina, it’s very difficult to say that the way things are now will continue to be this way ten years out. This forces Argentines to be creative and continuously innovate to keep up with a constantly changing environment.” Alejo states that mindset along with an attitude of self-reliance, leads to a growing entrepreneurial spirit in the Argentine people. 

In thinking of Argentina’s unstable economy as being a platform for opportunity, perhaps Boston Market CEO and Founder, George Nadafff states it best when he said, “No business, no problems. No problems, no business. Problems are opportunities for solutions.”