Abstract - Quest for Global Competitiveness - Universidad de Puerto ...

Keywords: stimulus, incentives, training, PuertoRicoIntroductionThe initiation and growth of the small business activities in theisland of Puerto Rico (PR), an unincorporated territory of the UnitedStates, is in some respects similar to those occurring in the continental USand the world. As a Commonwealth territory of the United States, PuertoRico operates under U.S. judicial, monetary and tariff systems. It is anopen economy with free mobility of goods, service, capital, labor andhighly trained professionals who easily flow to the large and prosperousU.S. market. In spite of this, per capita income in P.R. is only 30 percentof the U.S. average and reported at $18,500.00. The local population andbusinesses are undergoing a difficult economic downturn characterized byrising unemployment (14.5% in 2009), lower growth, diminishedacquisition of goods and a scenario that does not provide for a newgeneration of professionals to find employment.Puerto Rico’s economic development program which was createdin the early 1970s achieved remarkable growth earlier on but has stalled inthe last decade. Therefore, the local government is extremely concernedabout restoring growth, creating jobs and retaining professionals. To someextent, in spite of the progressive economic difficulties, Puerto Rico hasadequately pursued new dimensions for income generation and to createemployment through entrepreneurship. In recent years, though to alimited extent, the Puerto Rican government has made efforts to advanceentrepreneurship and in the process, create new small business start-ups,assist cash- short firms, and to help the island’s stagnant employment andeconomy. Nevertheless, assessments of the programs are scarce.