In Colombia, with the purpose of fostering an environment conducive to economic growth, social development, productivity and competitiveness, Law 2069 of 2020 was enacted, aimed at promoting the creation, growth and consolidation of companies.
Entrepreneurship as an engine for equity and development
The law recognizes that entrepreneurship is essential to improving equity in the country, being an important source of job creation and contributing to formal employment and the strengthening of the national economy.
Furthermore, this regulation is a direct response to mitigate the negative impacts caused by the COVID-19 pandemic, seeking to revive the economy and promote social development by supporting entrepreneurs.
Benefits and facilities for entrepreneurs
Law 2069 of 2020 creates various strategies and benefits to reduce burdens and facilitate procedures for micro, small, and medium-sized enterprises (MSMEs):
- INVIMA tariff differentiation and reduction: Exemption from payment for micro-enterprises and adjustment for SMEs.
- Adjustment in departmental tax rates for registration.
- Reduction of fees for registration acts in Chambers of Commerce for micro-enterprises.
- Implementation of SANDBOX, a mechanism that regulates innovative ventures in controlled environments.
- Simplified accounting system for micro-enterprises.
- Creation of a Public Procurement Information System and inclusion of micro-enterprises in low-value procurement processes and the State’s virtual store.
Financial and tax incentives
To facilitate access to financing, the law establishes:
- Promoting donations to INNpulsa, a key entity for business development.
- Gradual financial inclusion for microbusinesses, facilitating access to microcredits.
- Refund of Value Added Tax (VAT) balances in favor for SMEs.
Modernization and institutional articulation
The regulation seeks to update current legislation and responds to new needs, promoting:
- The unification of public sources for entrepreneurship financing.
- The articulation of the regional network of entrepreneurship and SMEs with the National System of Competitiveness and Innovation (SNCI).
Education and training for entrepreneurship
A fundamental pillar is the integration of entrepreneurship into the educational field:
- Teacher training programs on entrepreneurship and business development in primary and secondary education.
- Degree options in higher education that include the presentation of entrepreneurial projects.
- Creation of business consulting services to support the creation of companies.
- SENA’s specialized programs to strengthen entrepreneurial skills.
Law 2069 of 2020 represents a comprehensive policy to promote entrepreneurship in Colombia, facilitating the formalization, financing, training and sustainability of companies, essential pillars for the recovery and growth of the country.
