Business Ecosystems and Entrepreneurial Success

Dear Readers,

Last week, I had the privilege of attending the vibrant Puerto Rico Icon Conference, an illuminating gathering of forward-thinking entrepreneurs. This event showcased a diverse array of initiatives spanning biotech, AI, real estate, and film projects, all unified by Puerto Rico's globally acclaimed incentive program.

Puerto Rico's Economic Feat and Incentive Programs

Puerto Rico's economic landscape, with a GDP nearing $30 billion for a population of just 3 million, is a testament to its remarkable potential. The island's incentive programs, particularly for new businesses, are seen by many as unparalleled opportunities. These incentives, often deemed "no-brainers" for startups, are a key driver in the island's economic dynamics.

The Hayek Perspective: A Cautionary Tale

A panelist at the conference adeptly related our situation to F.A. Hayek's critique of central economic planning and the risks it poses to individual liberty and entrepreneurship. This discussion served as a poignant reminder of the delicate balance between government intervention and the free market, a balance that has underpinned the United States' success in fostering innovation and entrepreneurial success.

Puerto Rico: A Land of Contrasts and Opportunities

Despite its incentives, Puerto Rico faces significant challenges in ease of doing business. The inclusion of San Juan in the Doing Business North America 2022 Report by Arizona State University's Center for the Study of Economic Liberty, where it ranked last among 83 U.S. jurisdictions, signals profound systemic issues. These challenges mirror Hayek's concerns about the potential stifling of the entrepreneurial spirit through excessive state control.

The Entrepreneurial Spirit Amidst Bureaucratic Hurdles

In Puerto Rico, the vibrant entrepreneurial spirit often encounters the complexities of regulatory frameworks and bureaucratic processes. This environment poses particular challenges for SMEs, which constitute 95% of the island's businesses and are vital to its economic structure.

Global Startup Challenges and Local Opportunities

The year 2023 has been challenging for startups globally, marked by a surge in down-rounds, as reported by equity management company Carta Inc. This underscores the broader financial challenges startups face, a scenario where Puerto Rico's incentives can provide some relief, despite the existing bureaucratic hurdles.

The Road to Entrepreneurial Freedom

Echoing Hayek, there's a need for a business ecosystem that balances individual initiative and minimal state interference – a blend conducive to innovation, job creation, and economic growth. Our goal should be to minimize roadblocks for businesses in Puerto Rico, thereby amplifying the entrepreneurial spirit.

Reflection on Past Ventures and Future Endeavors

Reflecting on my journey with Nexeon Medsystems, my venture that did not meet most investor expectations, I am learning and evolving in my approach to engaging with investors. Despite mixed feedback on how best to proceed, I am committed to offering prior investors advantageous opportunities in my upcoming ventures. With plans to launch a new business within the next 12-18 months, I aim to translate these learnings into successful outcomes.

Best,

Will Rosellini