Efecto Cocuyo reported that Venezuela lost approximately 1.3 million entrepreneurs in 2025, according to the Global Entrepreneurship Monitor (GEM) Venezuela 2025 Report, presented on March 18, 2026 by the Andrés Bello Catholic University (UCAB) and the Institute of Higher Administration Studies (Iesa).

The figure represents a drastic contraction: the number of people with early entrepreneurial activity fell from 2.7 million in 2024 to about 1.4 million in 2025. If the drop recorded in 2023 is added, the total number of entrepreneurs who left the market in the last two years reaches 2 million.

The study, prepared with the support of the Development Bank of Latin America and the Caribbean (CAF), Mercantil Banco and the consulting firm EY Venezuela, is based on a survey of 1,888 adults over 18 years of age and a survey of more than 36 experts.

The Early Entrepreneurial Activity Rate (TEA) fell from 11.7% in 2024 to 7.7% in 2025, the lowest level since 2003 (when it reached 27.3%). This reduction is equivalent to a contraction of 15 percentage points compared to 2023 and shows the exhaustion of the self-employment model that prevailed in previous years.

77.8% of early ventures are in the nascent stage (less than three months of operation), an increase of almost nine points compared to 69% in 2024. In contrast, only 1.9% of the enterprises manage to consolidate themselves as established businesses (more than 3.5 years), a figure similar to the 1.8% of the previous year.

The ratio between early and established ventures reaches 4 to 1, which reflects very low business sustainability. 88% of entrepreneurs state that their main motivation lies in the need to survive in the face of the scarcity of formal jobs.

At the same time, 55% seek to generate a differential impact (compared to 40% in 2024) and 41.2% aspire to create wealth.

The profile of the entrepreneurs shows that 74% are between 18 and 44 years old, with a notable increase in the 18 to 24 year old group (from 17.5% to 24.4%). There is almost gender parity in the early stages (50.3% men and 49.7% women). 53% completed high school and 24% have higher education. 43% operate in a self-employed condition.

Venezuela ranks second to last in the world in the National Entrepreneurial Context Index (NECI), only above Angola, due to serious structural vulnerabilities.

Among the main causes of this contraction are international sanctions, persistent inflation, tax asphyxiation, the erosion of purchasing power, the depletion of family savings and remittances as a source of initial capital (between 5,000 and 20,000 dollars), a reduced domestic market, state bureaucracy, the lack of formal financing and a regulatory environment that penalizes formalization and scalability.

Researchers Luis Lauriño (UCAB), Demetrio Marotta (UCAB) and Aramis Rodríguez (IESA) agree that the ecosystem has entered a phase of structural contraction, with initiatives trapped in the initial stages and high turnover in the informal sector.

The report recommends tax exemptions for four years for new ventures, smart financing accompanied by technical assistance, integration of entrepreneurs into corporate value chains, greater training in crisis management and productivity, and accelerated adoption of digital tools.

The GEM Venezuela 2025 confirms that the country faces a critical stagnation in its business fabric, dominated by survival ventures and with little growth potential in the absence of deep systemic reforms.

Efecto Cocuyo is a caracaus based publication that covers focused on strengthening democracy and promoting the right of people to be well informed.

With information from Prensa Ucab