But before I tell you about my visit with Piloto151, let me tell you about Puerto Rico, a Commonwealth of the United States. It will sound bad for a second, but there is an amazing silver lining. The island's economy has been in contraction for years, in fact it has been one of the fastest contracting economies in the planet. Its debt per capita is the highest in the country, unemployment levels also the highest and its average income is much lower than that of Mississippi, the state with the lowest average personal income. Stating the obvious, its population is practically 100% Hispanic, a large slice of the underserved. There is no doubt that the Great Recession brutally ravaged the Puerto Rican economy, but what I saw at Piloto151 gives me serious cause for hope, celebration and opportunity.
As important as large institutions are, times are changing at neck-breaking speed. Small businesses are taking the lead, outpacing innovation rates of large companies and hence creating the vast majority of net new jobs. American entrepreneurship is rooted in powerful renewal and continuous invention and reinvention. The SBA is determined to help develop and enhance inclusive and effective paths for entrepreneurship given its importance to economic growth and our country maintaining its competitive edge.
The Growth Accelerator Fund competition’s fifty $50,000 cash prize winners (see sba.gov/accelerators for more information) were nothing short of astounding, especially since 832 applications were received - Piloto151 was one of the winners. The prizes are meant to assist accelerators fund their operations and give them more capacity to scale up. The competition was designed to award capital to the best-in-class models while at the same time including a focus on geographic areas and sectors in which financing is in short supply, including models that are run by and/or support underrepresented groups.
I have seen this at work all over the country, most recently in San Juan. I sat down with about a dozen startups as well as the co-founder of Piloto151, Sofia Stolberg, for an impromptu fireside chat - even though it was 85 degrees and sunny. The companies were a mix of tech driven startups and established small businesses doing everything from building temporary disaster shelters to advising clients on communication strategies. The energy was infectious and what makes it all the more amazing is that they are keenly aware that their efforts in the burgeoning entrepreneurial ecosystem in the island will be a core part of it getting back on its feet. The challenge becomes them and the uphill run will make their collective entrepreneurial muscles stronger. We think the ecosystem continues to strengthen and Piloto151 is now part of a solid network of equally committed entrepreneurial ecosystems across the land.
Fueled by innovation with a dash of re-invention, the good work Piloto151 is enabling is key as Puerto Rico continues to plug away on its challenges. We will keep supporting innovative small businesses in this important journey, and like we say in our particular version of colloquial Spanish, "a meter mano gente."
About the Author:
Javier Saade
SBA Official Javier Saade is the Associate Administrator of the US Small Business Administration’s Office of Investment and Innovation.
The engine of Puerto Rico’s economic renewal will be powered by innovation and re-invention | The U.S. Small Business Administration
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