Foto – Christine Johnson Pexels.com
The Dominican Republic has been setting the stage for startup culture for nearly a decade.
Is the DR startup ecosystem ready for global exposure?
Isn’t it called “Silicon Valley”?
The answer is: maybe.
The Dominican Republic is sending strong signals that it is becoming an international hub for innovation and entrepreneurship. Mirroring the USA’s Small Business Administration (SBA), enter RD-Emprende (DR does Business).
RD-Emprende is a sub-agency of the Dominican Ministry of Industry & Commerce (MICM), which launched in 2022. According to MICM, RD-Emprende brings together 38 entities that share resources to support the development of new companies. RD Emprende’s formation is part of a decade-long entrepreneurial movement in the Dominican Republic.
This movement was initiated in 2016 by then President Danilo Medina’s enactment of Entrepreneurship Law No. 655-16. This and other laws have been put into place to provide a very robust and comprehensive legal framework. This framework was built to make it easier for foreign businesses to operate within the DR for more substantial economic growth and development.
The Dominican president coined “Silicon Beach” BTW.
As part of a 2021 press release, President Luis Abinader announced “the urban development of 8.5 million square meters in Puerto Plata, where nine new world-class hotels and the “DR Silicon Beach” will be built.” This project is an “ecosystem of creativity and innovation where technology companies, national and international universities, research centers, corporations, and manufacturing will come together, and they will be able to set up shop and have all the facilities to develop their products and services.”
Between presidential announcements, friendly legislation, and public/private sector alliances, the DR still hasn’t produced a single economy-smashing tech startup or a startup culture that can rival its closest neighbor, Puerto Rico. Which, by the way, is home to Parallel 18, the largest international startup accelerator south of the United States.
So, what’s missing from the DR’s startup ecosystem?
In a big-picture view, it looks self-evident:
– Effective startup programming
– Mission, leadership, and vision
– Stronger collaboration within the corporate sector
In short, startup acceleration needs modernization. The incubation/accelerator scene in the DR is small but growing. Top acceleration programs include BOOST Acceleration Camp, CREE Banreservas, and Impúlsate Popular. The majority of these companies accept not only tech startups but SMBs as well.
In our analysis of acceleration programming in the DR, we observed a strong emphasis on mentorship, resourcing, and business formation. The problem is that the majority of industry leaders recruited to mentor startups are largely prestigious executives from big domestic industries. Great enterprise-level business savvy, but most lack real-world experience in startup growth.
As a startup in the Dominican Republic, revenue operations, accompanied by tactical support, world-class vendors, and experienced talent who have taken startups to market are still absent from the local ecosystem.
TechStars… is that you?
The most influential startup technology firms in the world, like Google, Amazon, and Uber, have internal innovation centers. The purpose is threefold:
1. Strategic and profitable venture capital investments that boost the company’s productivity, competitiveness, and market share.
2. Accelerate industry-focused technology from the talent that most closely drives industry innovation.
3. Remain at the competitive edge of market developments (remember Blockbuster vs Netflix?)
Large Dominican companies like Arajet in aviation and NewTech in software do not currently deploy VC initiatives to invest in or incubate startup technologies beneficial to tourism or nearshoring industries, respectively.
#PROVOKEVISIBILITY
In 2024, the #ProvokeVisibility Campaign was nominated by the United Nations World Summit Awards in the Dominican Republic to empower entrepreneurs’ economic growth and visibility on the Dominican startup scene. By creating a greater sense of pride and community around startup culture, more entrepreneurs will be effectively nurtured to world-class, economy-transforming status. In parallel, those same entrepreneurs provide modern resources, capital, and leadership to startups in the Dominican Republic.
A perfect example of the emphasis on the effect of startup culture is in many Asian countries, which place startup culture with celebrity status. This has led to rapid economic growth, industrialization, and national pride. Thus far, no one figure galvanizes Dominican startups like Steve Jobs did in the United States.
Laptop life: pick a beach!
The Dominican Republic is already prioritizing infrastructure, cybersecurity, and talent nearshoring on the list of strategic national interests. With greater collaboration and transparency among startup and innovation leaders, it will soon surpass Puerto Rico to become the region’s largest startup hub. Right now, for a scrappy and resourceful startup willing to take some extra steps, it’s a great location for digital nomads and startup founders alike.
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Jonathan J. Mentor is a renowned revenue scientist, growth strategist, and advocate for underrepresented startups. As the Founder & CEO of Successment, he enables recurring revenue for startups with RevOps Science®.
In 2024, Successment’s #ProvokeVisibility Campaign was nominated in the Dominican Republic for the United Nations World Summit Awards.
