Paraguay’s Startup Scene Climbs Global Ranks but Faces Tough Hurdles

Paraguay’s startup scene is getting noticed. According to the 2025 Global Startup Ecosystem Index by StartupBlink, the country now ranks 97th in the world and 8th in South America for supporting new businesses.

Asunción, the capital, climbed 168 spots to 559th among global cities. These rankings use data from official sources like Crunchbase and Statista. The Paraguayan government has tried to help young companies grow.

The Ministry of Information and Communication Technologies leads a national plan to improve internet access and digital services. Over 400,000 people now have digital IDs, which makes it easier to use more than 200 government services online.

The country also works to connect schools to the internet and support digital learning. Startups in Paraguay focus on areas like financial technology (fintech), agriculture technology (agritech), and online shopping.

Many try to solve local problems, such as helping people in rural areas access banking services through their phones. The fintech sector has grown quickly as more Paraguayans use the internet and smartphones.

Despite these steps, startups still face real problems. Getting funding is hard. Most local banks and investors are cautious about new businesses.

Many founders use their own savings or borrow from friends and family, which makes it tough to grow. There are few local venture capital firms or angel investors.

Regulations also slow things down. It takes time to register a business or get permits. The rules for startups are not always clear, and changes in tax policy can create uncertainty.

The new Public–Private Partnership Law, passed in January 2025, aims to make it easier for private companies to work with the state, but it is too early to tell if this will help startups.

Finding and keeping skilled workers is another challenge. Paraguay has more tech talent than before, but startups cannot always pay high salaries. Many skilled workers leave for better jobs in other countries.

Schools and universities are updating their courses, but there is still a gap between what students learn and what startups need. Compared to countries like Brazil, Chile, Argentina, and Uruguay, Paraguay’s startup market is smaller.

Still, the country offers low taxes, personal safety, and a stable government, which attracts some investors and entrepreneurs. The government wants more startups to join international networks and rankings to gain attention and support.

Paraguay’s startup sector is growing and shows promise, but it needs more investment, clearer rules, and better training to keep up with its neighbors.