On August 7, the Assembly held the first debate on the Entrepreneurship and Innovation bill which proposes to create a regulatory framework to promote the development of innovation projects, and formalize financing mechanisms, including collective financing platforms (crowdfunding). The Economic Development Committee in a separate meeting approved the report for a second debate on a proposal for the Companies Law which will be discussed in the plenary session after it returns from recess.
During the session, the backer of the Entrepreneurship Bill, Esteban Albornoz, said that the measure will regulate the development of innovation projects, providing non-tax incentives and facilities for the use of infrastructure, as well as funding promotion and dissemination activities. The measure will also create preferential access to financial services and public investment funds for entrepreneurs, and envisages the possibility of using intangible assets as collateral for credit operations. It also establishes contracting modalities for enterprises and creates a National Council.
The legislators have submitted various comments to be taken into account for this second report and emphasized the importance of promoting collective financing and analyzing the procedures for entrepreneurs to be able to present and develop projects through a single entity. They also said they would require strategies to be set in place to monitor the development of entrepreneurship and the effective enforcement of the laws.
For the second debate, Assembly members decided to include the observations made so far in the text of the bill and merge it with an initiative presented by Mae Montaño as well as another initiative presented by the former assembly member Christian Viteri.
The Economic Development Committee in parallel approved the report for the second debate of the bill to reform the Companies law which will allow other forms of corporate reorganization, including combined operations and cross-border mergers, to expand citizens’ associative capacity. The measure will be discussed on the Assembly floor once the legislative recess ends.