what forms of technology are promient in nicaragua
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Nicaragua’s technology scene is still very much in early stages. Internet penetration in Nicaragua is under 20%, which makes technological innovation difficult, if not impossible. The country relies on agriculture, which represents 17% of GDP, the highest percentage in Central America.
The entrepreneur scene is not invisible, but it’s still growing. Luis Montalvan Co-Founder of Vynil, a mobile application for nomads, said, “Starting a startup in Nicaragua is like playing the hardest video game you know.”
The lack of support and financing available make it difficult for technology and innovative efforts to get off the ground. This outlook is hopefully changing; for now, here are five facts on the technology and entrepreneur landscape in Nicaragua.
1. Law 645 promotes micro-businesses and SMEs
Ley número 645 de Promoción, Fomento y Desarrollo de la Micro, Pequeña y Mediana Empresa seeks to help classify and promote SMEs and micro-businesses. However, to be considered companies, organizations must comply with all form rules in the law. This often presents a challenge for emerging companies.
2. Coworking spaces unite the entrepreneur community
While the technology scene is still in its infancy, entrepreneurs do have places to go. La Fábrica Coworking, co-labora, and Encuentros all offer different options for coworking. Some offer events and networking opportunities so that entrepreneurs can get together and share ideas in Nicaragua.
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3. Outsourcing services in Nicaragua are booming
The country is now home to many outsourcing centers, which is a growing industry in Nicaragua. In 2017, the country reported exporting US$134 million and receiving over US$92 million in investment to date. While Nicaragua is very much still an agriculture-based society, outsourcing has helped grow the GDP in recent years.
4. Agtech has not taken off yet
Though agriculture makes up 60% of Nicaragua’s total exports, agriculture technology has yet to be disrupted in the country. A study by Instituto Centroamericano de Administración de Empresas (Central American Institute of Business Administration) found that Nicaragua is the Central American country with the least technological changes in agriculture.
Nicaragua only increased by 0.2% in technological changes from 1981-2012. By comparison, Costa Rica grew 0.9%, Honduras 1.2%, and Guatemala 0.5%.
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5. The government is emphasizing English and technology in the classroom
In 2018, the Nicaraguan government announced it would focus on two initiatives for schools. The first is introducing more English, and the second is to put more technology in the classroom. The Ministry of Education planned to train over 56,000 teachers on the use of technology in the classroom.
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