Consortium will promote U.S., Peruvian entrepreneurs
NEWARK, N.J. - A consortium of business, academic, and immigrant organizations in the United States and Peru is collaborating on an initiative it hopes will assist small-business entrepreneurs in both countries.
The Peruvian American Center for Entrepreneurial Development will be modeled after U.S.-style business incubators set up to provide logistics, technical infrastructure, training, and other resources for business owners who lack the capacity to expand the reach of their products beyond their own communities.
The project, with support from Peruvian business leaders in the United States and universities in both countries, opened an office last month in Lima, Peru, and plans to be operational this month. Its U.S. counterpart will be based at the business-incubator program of the New Jersey Institute of Technology.
Daniel Jara, a Peruvian business leader and head of the Statewide Hispanic Chamber of Commerce of New Jersey, said it was important for Peruvian immigrants to share the know-how that has made them successful in America.
"We're in a perfect position, since we know the market, the language, and the culture, to help these businesses," Jara said.
Business incubators are usually aimed at helping eligible start-up companies or entrepreneurs navigate everything from applying for funding or bank loans to developing marketing plans or learning how to expand into new markets.
The project in Peru, like most business incubators, will offer eligible participants access to a central office with telephones, Internet-ready computers, and other resources that small-business entrepreneurs in a developing country may not have ready access to, Jara said.
Participants will also have access to a staff of academic and business experts and will receive training on everything from export-import regulations to the contracting requirements of doing business under a recently signed free-trade agreement between the United States and Peru.
Judith Sheft, associate vice president of technology development at NJIT, said business incubators can be a valuable tool for small-scale entrepreneurs anywhere in the world.
"For an early company that's just starting up, the advantage of the incubator is that you're not doing it on your own," Sheft said. "You have the support of the incubator managers to help you move your business forward, and you have the opportunity to network and collaborate with other companies that are in the business incubator."
The program in Peru is being set up with an initial investment of about $500,000, said Jara, who added that it will be run as a collaboration of his chamber in New Jersey, the Peruvian American National Roundtable, NJIT, and Universidad Inca Garcilaso de la Vega in Lima.
The initiative is aimed not only at helping, for example, a small peanut-oil producer in rural Peru figure out how to market its product in America, but at giving small-business owners in New Jersey the chance to break into overseas markets, Jara said.
The model has been successful in the United States, according to Sheft, who said NJIT oversees a technology business incubator that has 95 small companies in it, including some international companies that use it as a "soft landing" to establish a foothold in American markets.
"We're really excited about the potential that it has for both New Jersey and Peru," Sheft said. "There's certainly a great opportunity for both of us to experience some economic development."
Read more: http://www.philly.com/inquirer/local/20110103_Consortium_will_promote_U_S___Peruvian_entrepreneurs.html#ixzz19yi9ES3J
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