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    Argentina's economy is set to flourish in the next two years, with the International Monetary Fund (IMF) predicting five percent growth in 2025 and 2026. Sweeping economic reforms and improved government finances have paved the way for economic stability and continued growth.

    In other words? It's a smart time to do business in Argentina.

    Latin America's third-largest economy has much to offer global investors, with a regulatory and social environment that supports business creation, a highly skilled, English-speaking workforce, and strategic geographic location.

    Despite the country's promise, establishing business in Argentina does come with unique challenges.

    In this article, we'll explore business opportunities in Argentina, and compare the pros and cons of investing in the up-and-coming nation.

  1. Advantages of business opportunities in Argentina
    • Economic potential. As the third-largest economy in Latin America, Argentina has a GDP of approximately US$640 billion and a population of 46.9 million. The economy is expected to grow by 5% in 2025.
    • Skilled workforce: Argentina has a highly educated and skilled labor force, particularly in sectors like technology, engineering, marketing, and finance. In addition, Argentina boasts the highest level of English proficiency among LatAm countries.
    • Cost-effectiveness: Compared to other English-speaking regions, Argentina offers competitive operations expenses. The average monthly cost for labor, office space, and utilities is low.
    • Cultural ties: Argentina's multicultural population creates a welcoming environment for international businesses. Argentine business practices align with Western corporate culture, emphasizing hard work and communication.
    • Tourism and expats: With its diverse landscapes and vibrant culture, Argentina attracts tourists, expats, retirees, and digital nomads. In addition to contributing to a dynamic market, this creates small business opportunities in tourism, hospitality, and real estate.
  2. Promising Industries for Small Businesses in Argentina
  3. Argentina's skilled labor force, diversified industrial base, and strategic geographical location offer a fertile environment for many industries. Recent economic reforms under President Javier Milei — including slashed government spending and incentives for foreign investment in the domestic economy — have further boosted the business-friendly climate.

    Ahead, we share the most promising industries in Argentina for small businesses. These are the key, fast-growing sectors with the most profit potential:

    Technology and IT

    Argentina is in the midst of a tech boom. The Argentine IT sector in this nation has blossomed in the last decade, with local tech companies like MercadoLibre and Ualás carving a niche as Latin American leaders.

    The country is home to a skilled, highly educated workforce, thanks in part to its celebrated university system and recent push towards STEM education. In addition, the government's focus on deregulation has simplified business operations, making it an opportune time for tech entrepreneurs to enter the market.

    Fintech

    Argentina is a rising star in the financial industry, with the number of local fintech companies soaring from 158 in 2019 to 432 in 2024. The Argentine fintech boom has been fueled by rising demand for digital financial services and a friendly regulatory environment. In addition, bank account usage in Argentina remains low, creating an opportunity for fintech companies to reshape the financial landscape.

    Health

    The health and wellness industry is experiencing remarkable growth in Argentina and around the world, with a projected value of $9.49 trillion by 2032. Entering the Argentine health sector can be a profitable move, thanks to a high demand for fitness centers, personalized nutrition, and corporate wellness-focused programs. The Argentine market is expected to increase due to an aging population and increased reliance on digital health.

    Tourism and hospitality

    Diverse landscapes, natural wonders, and a lively culture draw hundreds of thousands of tourists to Argentina every month. The number of foreigners visiting Argentina hit 13.4 million in 2023, representing an 85.8% increase compared to 2022.

    Argentine tourism opportunities lie in areas like boutique hotels, adventure, and eco-tourism services. Also popular are cultural tours focused on tango, cuisine, and history, as well as unique experiences in diverse landscapes like Patagonia and Iguazu Falls.

    Real estate

    With ongoing infrastructure projects and a focus on modernizing cities, Argentina is experiencing rising demand for residential and commercial properties. This translates to major potential in the real estate sector, particularly in urban development and property management.

    Real estate-minded entrepreneurs in Argentina can find opportunities in property management, historic home renovation, and agencies directed at US citizens seeking to purchase local properties.

    E-commerce and retail

    Rising internet and smartphone penetration rates have led to a burgeoning e-commerce market in Argentina. The country's e-commerce market has grown more than 10 times over in the last two decades. Argentina boasts the third-highest percentage of internet users after Brazil and Mexico, and an estimated 95% of the connected adult population has made an online purchase once or more. In addition, the government's economic policies have facilitated easier market entry for foreign businesses.

  4. Starting a small business vs. hiring in Argentina
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    Starting your own company in Argentina isn't the only way to do business in the country — nor is it the easiest. Hiring remote workers through a local Employer of Record (EoR) is an attractive alternative for investing in the country, particularly when compared to the complex process of opening a local business.

    We discuss the pros and cons of starting a small business vs. hiring in Argentina below.

    Starting a small business in Argentina: Pros and cons

    Pros:

    • Access to local markets: With a population of nearly 46 million, Argentina represents a massive domestic market. In addition, the country grants easy access to the markets of other South American countries like Brazil, Paraguay, and Uruguay due to its membership in Mercosur.
    • Resource availability: Argentina is home to abundant natural resources, including fertile land for agriculture, lithium deposits, and potential for renewable energy development. However, the country's most valuable resource might be its well-educated workforce skilled in high-demand areas like software development, AI/ML, and fintech.
    • Low operating costs. Costs for conducting business in Argentina — including labor, electricity, and office space — are low.

    Cons:

    • Regulatory challenges. Despite recent reforms, foreign entrepreneurs continue to face bureaucratic hurdles. Further complicating the process of setting up a local business is Argentina's complex regulatory framework and frequent legislative changes.
    • Strict import laws. Importing tech, hardware, and other equipment into Argentina can take months. In addition, strict import laws make the process expensive and complicated.
    • Financial planning issues. Opening a bank account as a foreign company is virtually impossible in Argentina, as you typically need an Argentine ID or local company registration. It's also unadvisable to anyone with USD due to the country's history of high inflation and currency instability.
    • Real estate hurdles. Finding reliable and affordable office space can be tricky, as property owners often hesitate to rent to foreign companies. Previous governments have implemented rent controls, which can lead to a shortage of availability as landlords may choose to keep properties off the market due to limitations on rent increases.

    Hiring in Argentina: Pros and cons

    Pros:

    • Untapped talent pool: Argentina offers a highly skilled workforce at competitive rates. The country has placed a strong emphasis on education, particularly in technology.
    • Cultural compatibility: Argentine culture values hard work, adaptability, and problem-solving.
    • Time zone alignment: For most of the year, Argentina is only one hour ahead of US Eastern Standard Time.

    Cons:

    • Complex labor laws: Argentina has stringent labor laws that favor employees. Failure to adhere to these laws can lead to high termination costs, mandatory benefits, and legal disputes.
    • Legal compliance risk: Misinterpreting or neglecting to comply with Argentine labor laws can lead to significant fines and legal issues for employers. To hire in Argentina, companies should partner with an Argentine Employment of Record (EOR) company. Collaborating with an EoR helps businesses enter the market more easily, comply with local labor laws, manage payroll efficiently, mitigate legal risks, access local expertise, and focus on core operations by outsourcing HR tasks — all while avoiding the complexities of setting up a legal entity in the country.
  6. Is it wise to invest in Argentina?
  7. The future looks bright for Argentina. The economy is expected to soar in the coming years, fueled in part by investments in the energy sector and new government initiatives designed to stabilize the macroeconomy.

    Under President Javier Milei, Argentina has implemented the following reforms:

    • Fiscal discipline: Milei's administration has achieved a fiscal surplus for the first time in over a century by reducing public spending and implementing austerity measures.
    • Investment Incentives: The government has introduced the Incentive Regime for Large Investments (RIGI) to attract foreign capital by offering tax benefits and protections against economic instability.
    • Inflation control: Efforts to control inflation have included devaluing the peso and cutting subsidies. Note that in addition to decreasing inflation rates, these measures have also resulted in increased unemployment and poverty levels.

    Pros and cons of investing in Argentina

    Recent reforms have led to improvements like reduced inflation rates and a fiscal surplus in Argentina. However — as with all investments — risks remain. Ahead, we'll take a closer look at some of the potential challenges of investing in Argentina.

    Pros:

    • Resource abundance: Argentina's natural resource wealth creates a solid foundation for industries like agriculture, energy, and mining.
    • Strategic reforms: Recent economic policies have improved fiscal stability and created a more business-friendly environment.
    • Skilled workforce: The country is home to a highly educated and skilled labor force, particularly in tech and financial services.

    Cons:

    • Economic volatility: Despite reforms, Argentina remains susceptible to economic fluctuations and external shocks.
    • Regulatory challenges: Navigating the complex regulatory environment can be a headache for foreign investors.
    • Social impact of austerity: Austerity measures have led to increased poverty and unemployment, which may affect market dynamics.

    Key advice for US Businesses

    • Consult local experts: Collaborating with local professionals can help navigate Argentina's complex economic landscape and evolving regulatory environment.
    • Diversify investments: Spreading investments across multiple sectors can mitigate risks of economic volatility.
    • Team up with an EoR: Partner with an EoR like Howdy.com to hire the top Argentine talent. Howdy handles all aspects of your hiring processes, including payroll, financial, legal, and compliance.
  8. Expand your business to Argentina with Howdy.com
  9. Latin America's third-largest economy is going places fast. Establishing a business in Argentina offers direct market access to this rising star, but the regulatory and logistical challenges are a barrier.

    Partnering with Howdy to hire Argentine talent offers a streamlined, cost-effective alternative to opening a company in the country, enabling you to leverage local expertise without the hassle of setting up a physical presence.

    Let us handle the red tape so you can concentrate on growing your business and building a world-class Argentine team. Book a free demo to learn how we can help you expand your business in Argentina and beyond.

Small Business Opportunities in Argentina for US Citizens

Explore small business opportunities in Argentina for US citizens, from tech startups to real estate. Learn about key industries, investment tips, and more.

Published on: Jan 29, 2025

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Small Business Opportunities in Argentina for US Citizens featured image

Argentina's economy is set to flourish in the next two years, with the International Monetary Fund (IMF) predicting five percent growth in 2025 and 2026. Sweeping economic reforms and improved government finances have paved the way for economic stability and continued growth.

In other words? It's a smart time to do business in Argentina.

Latin America's third-largest economy has much to offer global investors, with a regulatory and social environment that supports business creation, a highly skilled, English-speaking workforce, and strategic geographic location.

Despite the country's promise, establishing business in Argentina does come with unique challenges.

In this article, we'll explore business opportunities in Argentina, and compare the pros and cons of investing in the up-and-coming nation.

Advantages of business opportunities in Argentina

  • Economic potential. As the third-largest economy in Latin America, Argentina has a GDP of approximately US$640 billion and a population of 46.9 million. The economy is expected to grow by 5% in 2025.
  • Skilled workforce: Argentina has a highly educated and skilled labor force, particularly in sectors like technology, engineering, marketing, and finance. In addition, Argentina boasts the highest level of English proficiency among LatAm countries.
  • Cost-effectiveness: Compared to other English-speaking regions, Argentina offers competitive operations expenses. The average monthly cost for labor, office space, and utilities is low.
  • Cultural ties: Argentina's multicultural population creates a welcoming environment for international businesses. Argentine business practices align with Western corporate culture, emphasizing hard work and communication.
  • Tourism and expats: With its diverse landscapes and vibrant culture, Argentina attracts tourists, expats, retirees, and digital nomads. In addition to contributing to a dynamic market, this creates small business opportunities in tourism, hospitality, and real estate.

Promising Industries for Small Businesses in Argentina

Argentina's skilled labor force, diversified industrial base, and strategic geographical location offer a fertile environment for many industries. Recent economic reforms under President Javier Milei — including slashed government spending and incentives for foreign investment in the domestic economy — have further boosted the business-friendly climate.

Ahead, we share the most promising industries in Argentina for small businesses. These are the key, fast-growing sectors with the most profit potential:

Technology and IT

Argentina is in the midst of a tech boom. The Argentine IT sector in this nation has blossomed in the last decade, with local tech companies like MercadoLibre and Ualás carving a niche as Latin American leaders.

The country is home to a skilled, highly educated workforce, thanks in part to its celebrated university system and recent push towards STEM education. In addition, the government's focus on deregulation has simplified business operations, making it an opportune time for tech entrepreneurs to enter the market.

Fintech

Argentina is a rising star in the financial industry, with the number of local fintech companies soaring from 158 in 2019 to 432 in 2024. The Argentine fintech boom has been fueled by rising demand for digital financial services and a friendly regulatory environment. In addition, bank account usage in Argentina remains low, creating an opportunity for fintech companies to reshape the financial landscape.

Health

The health and wellness industry is experiencing remarkable growth in Argentina and around the world, with a projected value of $9.49 trillion by 2032. Entering the Argentine health sector can be a profitable move, thanks to a high demand for fitness centers, personalized nutrition, and corporate wellness-focused programs. The Argentine market is expected to increase due to an aging population and increased reliance on digital health.

Tourism and hospitality

Diverse landscapes, natural wonders, and a lively culture draw hundreds of thousands of tourists to Argentina every month. The number of foreigners visiting Argentina hit 13.4 million in 2023, representing an 85.8% increase compared to 2022.

Real estate

With ongoing infrastructure projects and a focus on modernizing cities, Argentina is experiencing rising demand for residential and commercial properties. This translates to major potential in the real estate sector, particularly in urban development and property management.

Real estate-minded entrepreneurs in Argentina can find opportunities in property management, historic home renovation, and agencies directed at US citizens seeking to purchase local properties.

E-commerce and retail

Rising internet and smartphone penetration rates have led to a burgeoning e-commerce market in Argentina. The country's e-commerce market has grown more than 10 times over in the last two decades. Argentina boasts the third-highest percentage of internet users after Brazil and Mexico, and an estimated 95% of the connected adult population has made an online purchase once or more. In addition, the government's economic policies have facilitated easier market entry for foreign businesses.

Starting a small business vs. hiring in Argentina

Argentina flag on dock with mountains in San Carlos de Bariloche, Río Negro

Starting your own company in Argentina isn't the only way to do business in the country — nor is it the easiest. Hiring remote workers through a local Employer of Record (EoR) is an attractive alternative for investing in the country, particularly when compared to the complex process of opening a local business.

We discuss the pros and cons of starting a small business vs. hiring in Argentina below.

Starting a small business in Argentina: Pros and cons

Pros:

  • Access to local markets: With a population of nearly 46 million, Argentina represents a massive domestic market. In addition, the country grants easy access to the markets of other South American countries like Brazil, Paraguay, and Uruguay due to its membership in Mercosur.
  • Resource availability: Argentina is home to abundant natural resources, including fertile land for agriculture, lithium deposits, and potential for renewable energy development. However, the country's most valuable resource might be its well-educated workforce skilled in high-demand areas like software development, AI/ML, and fintech.
  • Low operating costs. Costs for conducting business in Argentina — including labor, electricity, and office space — are low.

Cons:

  • Regulatory challenges. Despite recent reforms, foreign entrepreneurs continue to face bureaucratic hurdles. Further complicating the process of setting up a local business is Argentina's complex regulatory framework and frequent legislative changes.
  • Strict import laws. Importing tech, hardware, and other equipment into Argentina can take months. In addition, strict import laws make the process expensive and complicated.
  • Financial planning issues. Opening a bank account as a foreign company is virtually impossible in Argentina, as you typically need an Argentine ID or local company registration. It's also unadvisable to anyone with USD due to the country's history of high inflation and currency instability.
  • Real estate hurdles. Finding reliable and affordable office space can be tricky, as property owners often hesitate to rent to foreign companies. Previous governments have implemented rent controls, which can lead to a shortage of availability as landlords may choose to keep properties off the market due to limitations on rent increases.

Hiring in Argentina: Pros and cons

Pros:

  • Untapped talent pool: Argentina offers a highly skilled workforce at competitive rates. The country has placed a strong emphasis on education, particularly in technology.
  • Cultural compatibility: Argentine culture values hard work, adaptability, and problem-solving.
  • Time zone alignment: For most of the year, Argentina is only one hour ahead of US Eastern Standard Time.

Cons:

  • Complex labor laws: Argentina has stringent labor laws that favor employees. Failure to adhere to these laws can lead to high termination costs, mandatory benefits, and legal disputes.
  • Legal compliance risk: Misinterpreting or neglecting to comply with Argentine labor laws can lead to significant fines and legal issues for employers. To hire in Argentina, companies should partner with an Argentine Employment of Record (EOR) company. Collaborating with an EoR helps businesses enter the market more easily, comply with local labor laws, manage payroll efficiently, mitigate legal risks, access local expertise, and focus on core operations by outsourcing HR tasks — all while avoiding the complexities of setting up a legal entity in the country.

Is it wise to invest in Argentina?

The future looks bright for Argentina. The economy is expected to soar in the coming years, fueled in part by investments in the energy sector and new government initiatives designed to stabilize the macroeconomy.

Under President Javier Milei, Argentina has implemented the following reforms:

  • Fiscal discipline: Milei's administration has achieved a fiscal surplus for the first time in over a century by reducing public spending and implementing austerity measures.
  • Investment Incentives: The government has introduced the Incentive Regime for Large Investments (RIGI) to attract foreign capital by offering tax benefits and protections against economic instability.
  • Inflation control: Efforts to control inflation have included devaluing the peso and cutting subsidies. Note that in addition to decreasing inflation rates, these measures have also resulted in increased unemployment and poverty levels.

Pros and cons of investing in Argentina

Recent reforms have led to improvements like reduced inflation rates and a fiscal surplus in Argentina. However — as with all investments — risks remain. Ahead, we'll take a closer look at some of the potential challenges of investing in Argentina.

Pros:

  • Resource abundance: Argentina's natural resource wealth creates a solid foundation for industries like agriculture, energy, and mining.
  • Strategic reforms: Recent economic policies have improved fiscal stability and created a more business-friendly environment.
  • Skilled workforce: The country is home to a highly educated and skilled labor force, particularly in tech and financial services.

Cons:

  • Economic volatility: Despite reforms, Argentina remains susceptible to economic fluctuations and external shocks.
  • Regulatory challenges: Navigating the complex regulatory environment can be a headache for foreign investors.
  • Social impact of austerity: Austerity measures have led to increased poverty and unemployment, which may affect market dynamics.

Key advice for US Businesses

  • Consult local experts: Collaborating with local professionals can help navigate Argentina's complex economic landscape and evolving regulatory environment.
  • Diversify investments: Spreading investments across multiple sectors can mitigate risks of economic volatility.
  • Team up with an EoR: Partner with an EoR like Howdy.com to hire the top Argentine talent. Howdy handles all aspects of your hiring processes, including payroll, financial, legal, and compliance.

Expand your business to Argentina with Howdy.com

Latin America's third-largest economy is going places fast. Establishing a business in Argentina offers direct market access to this rising star, but the regulatory and logistical challenges are a barrier.

Partnering with Howdy to hire Argentine talent offers a streamlined, cost-effective alternative to opening a company in the country, enabling you to leverage local expertise without the hassle of setting up a physical presence.

Let us handle the red tape so you can concentrate on growing your business and building a world-class Argentine team. Book a free demo to learn how we can help you expand your business in Argentina and beyond.