Costa Rica entrepreneurship rises despite growth challenges

The GEM National Report for Costa Rica 2025-2026, produced by the Cámara de Industrias de Costa Rica and the Universidad de Costa Rica, indicates a significant rise in early-stage entrepreneurial activity. Total early-stage entrepreneurial activity (TEA) increased from 5.1% in 2024 to 13.9% in 2025, while established businesses grew from 2% to 6.3%.

However, the report highlights challenges in business consolidation. Most of the growth is driven by nascent businesses operating for less than three months. Challenges include a lack of profitability, which was cited by 33.8% of those who closed or transferred a business, and a high percentage of entrepreneurs (83%) starting ventures due to employment scarcity.

Furthermore, the National Entrepreneurship Context Index (NECI) ranked Costa Rica 50th out of 53 economies with 3.8 points, a decline from its previous position at 43rd. The report identifies financing deficits and regulatory efficiency as key barriers to scaling businesses.