Public policy and the entrepreneurial ecosystem in Latin America

The scale and dynamism of the co-operative movement do not depend solely on the commitment of its members or the strength of its values. Academic research shows that the institutional environment, the entrepreneurial ecosystem and public policy are key determinants of the growth or decline of the co-operative sector.

The institutionalisation of the social and solidarity economy through comprehensive legal frameworks, the creation of specific regulatory bodies and the integration of the cooperative sector into national development plans have a positive and measurable impact on the scale of the cooperative movement. Empirical research confirms that public policies are the most influential factor on the size of the sector, surpassing even economic cycles.

However, this impact varies depending on the type of cooperative, the sector of activity and the region. Growth tends to be concentrated where there is a deep-rooted cooperative tradition and where public policy is better aligned with local productive realities. Where this culture does not exist, legislation alone does not bring about transformation. This reality opens up a line of research to analyse, on a country-by-country basis, how public policies and the entrepreneurial ecosystem shape cooperative development in Latin America.