Colombia’s 2025 Subnational Entrepreneurship Index, an annual ranking that evaluates the strength of entrepreneurial ecosystems across the country’s regions, has revealed the most dynamic cities in the country. Bogota maintained the top position, but Medellin’s performance, with a score of 5.78 out of 10, marks a significant leap forward. Compared with 2024, the city improved by nearly half a point, consolidating its role as one of Colombia’s most dynamic centers for entrepreneurship.
The index, released by the Private Council of Competitiveness, the Bolivar Davivienda Foundation, and Rosario University, offers one of the most detailed portraits to date of Colombia’s local startup environments. It evaluates 23 territories, seven metropolitan areas, and 16 cities through 58 indicators grouped into eight pillars: financing, human capital, skills and competencies, social capital, business environment, infrastructure, technological adaptation and corporate innovation, innovative ecosystems and knowledge generation, and entrepreneurial performance.
Strength in business networks and social capital
The report highlights Medellin’s best results in the areas of social capital and business environment, where it scored 7.32 and 6.38, respectively. These figures reflect the city’s strong networks of entrepreneurs, business associations, and support programs that link startups with larger companies, investors, and government initiatives. The commercial dynamism of Medellin’s metropolitan area, from its industrial base to its emerging tech sector, has become a key driver of entrepreneurial resilience.
The results underscore the impact of years of investment in innovation centers such as Ruta N, university-industry partnerships, and public policies designed to cultivate startups. Medellin’s relatively high survival rate for new companies demonstrates how collaboration between academia, business, and government has created fertile ground for entrepreneurs.
This approach has made Medellin a national benchmark outside the capital. Local leaders argue that the city’s entrepreneurial model, rooted in collaboration and social trust, is one of its most important advantages. The index results confirm the community-based networks are as critical as financing or technology in building robust entrepreneurial ecosystems.
Infrastructure: Medellin’s Achilles’ heel
Despite its progress, the 2025 index highlights a persistent weakness for Medellin: infrastructure. In this category, the metropolitan area ranked ninth among the 23 territories, with a score of 5.93. The report points to high cost of domestic land transport, elevated energy prices, and uneven access to essential services such as gas, water, and telecommunications.
These deficiencies have direct consequences for competitiveness. For startups and small businesses operating on limited budgets, higher transport costs or unreliable services can quickly erode profit margins. The lack of efficient logistics infrastructure also makes it more difficult for Medellin-based companies to scale nationally or expand into international markets.
Analysts warn that without stronger infrastructure, the city risks losing some of the competitive edge it has built in other areas. While innovation hubs and startup accelerators help nurture new businesses, the long-term viability of those ventures depends on a reliable physical and digital foundation. For Medellin to fully consolidate its position as a regional powerhouse, closing these infrastructure gaps will be essential.
Colombia’s push toward decentralized innovation
The Subnational Entrepreneurship Index serves as more than a scorecard. It is part of a broader national conversation about decentralizing Colombia’s economic and entrepreneurial development. By examining conditions across 23 regions, the index reveals not only Bogota’s dominance but also the rise of regional centers such as Medellin, Cali, Barranquilla, and Bucaramanga.
This year, for example, Bucaramanga — a much smaller metropolitan area — took third place in the ranking, trailing Medellin and reflected strong human capital indicators and an improving innovation ecosystem. The fact that this city ranks so highly underscores how Colombia’s entrepreneurial map is diversifying. No longer opportunities are confined to Bogota or Medellin; mid-sized cities are emerging as serious players, suggesting that talent and innovation are increasingly distributed across Colombia.
Policymakers see this diversification as crucial. A more balanced entrepreneurial landscape reduces dependence on capital and encourages talent retention in regional cities, spreading the benefits of innovation to different parts of the country. Medellin’s strong showing reinforces this vision; a city that just three decades ago was synonymous with violence has now become a reference point for entrepreneurial growth.
Still, experts emphasize that Medellin’s future competitiveness will hinge on addressing its infrastructure challenges. Energy affordability, transportation efficiency, and access to modern services will determine whether the city can scale its ecosystem to compete not only nationally but across Latin America. Cities such as Santiago, Mexico City, and Buenos Aires, remain formidable competitors, offering larger markets and easier access to international capital.
Medellin’s trajectory is notable. By improving nearly half a point in one year, the city has demonstrated its ability to adapt quickly and build on its strengths. With social capital and business dynamism as foundations, and with greater investment in infrastructure, Medellin has the potential to consolidate itself as a continental hub for entrepreneurship.