Governments don’t grow startups. Innovation does.

Recently, I had a conversation with a Dominican startup entrepreneur who argued that the Dominican Republic’s startup scene can’t succeed without direct government investments.

While I understand the sentiment, I think this perspective misses a big point: entrepreneurship thrives when it’s driven by the private sector, not the government. Look around the world – from Silicon Valley to Latin America – and you’ll see that the most successful startups grow because of private investments, entrepreneurs’ grit, and market-driven ideas. Not because the government is directly funding or controlling them.

I’m not saying government support isn’t important, but too much government involvement could actually hinder innovation. The truth is, startups are built on private capital and the freedom to take risks and fail — something that’s often stifled when the government plays too big a role.

Governments Suck At Innovation

Take the United States as an example, where Silicon Valley stands as the gold standard for startup success. Sure, the government has supported the tech industry through regulations and infrastructure, but it’s private investors, like venture capitalists, who fuel the fire. Silicon Valley didn’t thrive because of public loans or government-backed businesses. Instead, it grew thanks to investors willing to take risks on entrepreneurs with big ideas. 

The U.S. is just one example, but globally, it’s clear: Government involvement can help create the right conditions, but it’s private capital that powers the entrepreneurial engine. The risk of relying too much on the government is that it can lead to inefficiencies, red tape, and political interests that slow things down.

LATAM’s Road to Innovation: How the Private Sector Is Leading the Charge

Across Latin America, we’re seeing how the private sector is the driving force behind startup growth. In Brazil, for instance, Kaszek Ventures and Monashees Capital have helped Nubank and Wildlife Studios scale by providing the funding and guidance these companies needed to disrupt their industries. These are private-sector backed companies, not state-run ventures.

In Mexico, startups like Clip and Kavak have also seen success thanks to investors who understand the importance of risk capital. These companies weren’t created by the government — they were powered by private investors and entrepreneurs. The same goes for Colombia, where venture capital has played a huge role in the growth of startups, even though there are government programs like Apps.co designed to help foster innovation.

The message is clear: Private investment and entrepreneurial spirit are the true driving forces behind startup ecosystems. Governments can create a solid foundation, but it’s up to private investors and entrepreneurs to bring the innovation.

How Revenue Operations (RevOps) Helps Accelerate Startup Growth

As the startup landscape continues to evolve, innovative methods like Revenue Operations (RevOps) are helping companies grow smarter, faster, and more efficiently.

RevOps is all about aligning sales, marketing, and customer success teams to drive revenue growth and streamline operations. For startup accelerators, adopting a RevOps Science approach can massively boost the startups they work with. By improving how startups manage their revenue processes, RevOps helps them scale faster and reduce inefficiencies across different departments. This integrated approach ensures that startups stay aligned, with clear goals and data-driven strategies that keep them on track toward success.

For startups themselves, RevOps helps them manage their customer journey, ensuring they don’t miss out on any revenue opportunities. It also allows startups to automate key processes, make better decisions, and collaborate more effectively across teams — all of which contribute to faster growth and long-term success.

In Latin America, where startup ecosystems are maturing quickly, RevOps could be the game-changer that allows companies to scale without relying on government support or funding. By creating a solid operational foundation, RevOps enables startups to work smarter and grow more efficiently, giving them a better shot at success in competitive markets.

What the Dominican Republic Can Learn

The Dominican Republic is uniquely positioned to become a leader in the Caribbean’s startup scene. However, the key to achieving this lies in empowering private entrepreneurs, investors, and innovators to take charge. By fostering a culture of innovation and creating an environment where the private sector can thrive, the DR can build a startup ecosystem that’s both sustainable and competitive.

Rather than relying on heavy government investments or direct funding, the focus should be on creating the right conditions for entrepreneurs and private investors to succeed. The government’s role should be to provide supportive policies, access to infrastructure, and create opportunities for private investment to flow into the sector.

Take Chile, for example. Their Startup Chile program has been incredibly successful at attracting entrepreneurs, but it’s really the private sector that powers the majority of the innovation. The Dominican Republic can look to Chile’s example and focus on creating a space where private investors and entrepreneurs are given the resources they need to thrive.

A Vision for the Future

The future of the Dominican Republic’s startup scene doesn’t lie in government handouts but in private investment, entrepreneurial freedom, and market-driven innovation. By empowering local entrepreneurs and attracting global investors, the Dominican Republic can create a startup ecosystem that attracts attention worldwide.

The Dominican government can help by:

– Fostering a culture of innovation through education, mentorship, and networking opportunities.

– Strengthening the venture capital and angel investor networks to fuel the growth of Dominican startups.

– Ensuring entrepreneurs have access to digital infrastructure and resources.

– Attracting global investors by positioning the Dominican Republic as a tech hub in the Caribbean.

Conclusion

If the Dominican Republic wants to become a major player in the global startup scene, it has to look beyond government-backed funding and focus on creating a space where the private sector drives growth. By empowering entrepreneurs with the right tools, resources, and access to capital, the Dominican Republic can build a thriving startup ecosystem that produces long-term economic benefits without relying on the government to do the heavy lifting.

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By Jonathan Joel Mentor
Founder & CEO of Successment | Revenue Growth Strategist | Expert in Startup Ecosystem Development | United Nations World Summit Award Nominee