Running a business in Puerto Rico has the potential to cost more due to strict labor laws and the Jones Act (Challenges and Opportunities for the Puerto Rico Economy, 2020). As a territory of the United States, Puerto Rico has access to the United States justice system, ensuring legal and transparent settlements, including laws for private property. An economist from Moody’s, Gustavo Rojas Maute, explained that the company does not foresee growth but will remain “statistically stagnant” because the island has reached its peak employment level (Moody’s estimates that Puerto Rico’s economy will close in the red, 2024). Statistica projects only inclines for the commonwealth since its slight dip post-pandemic. Puerto Rico’s Gross Domestic Product per capita in USD is $37,171.72 for 2024 (Per capita real GDP U.S. 2023, 2024), and it has the lowest unemployment rate recorded in 20 years (Statistics Report About Puerto Rico, 2023). According to CE Noticias Financieras, Puerto Rico has a new focus on expanding its manufacturing sector, in turn creating employment opportunities for the people of Puerto Rico. Trump’s post-election goal is to reestablish a manufacturing base within the United States (Trump’s economic plan and Puerto Rico, 2024). The Biden-Harris administration has been extremely supportive of small and medium-sized businesses through the Small Business Administration (Opinion | Puerto Rico’s economic outlook if Kamala Harris wins, 2024). Biden has continued to invest in Puerto Rico and claims that under his administration, 100,000 jobs were created in Puerto Rico (Joe Biden: “We have turned around Puerto Rico’s economy”, 2024). With local and federal programs joining in pursuit of economic wealth for the island, Puerto Rico’s startups have a promising future.
While observing the economy of Puerto Rico, one would see that among the few economic risks, there is still a plethora of federal and communal aid provided, encouraging entrepreneurship. Jonathan Gonzalez, an entrepreneur based on the island with $11.5 million in venture capital as of 2024, spoke highly of entrepreneurship on the island to Fastcompany.com. He explained that the entrepreneurial ecosystem on the island has been thriving since the Puerto Rico Science, Technology, and Research Trust began supporting programs and new businesses on the island (“What’s driving a new era of economic growth in Puerto Rico,” 2024). The proximity of Puerto Rico to the mainland allows for tariff-free, quick trade between the mainland and its commonwealth (Puerto Rico Economic SWOT, 2024). The Economic Development Administration (EDA) has forged new local and federal partnerships to leverage new resources in support of entrepreneurs (USDA Rural Development Participates in Southern Puerto Rico Economic Development Activity in Ponce, 2024). Puerto Rico has proven to be an effective distribution point; the island’s physical location and tax incentives make it lucrative for startups, and it can serve as a base for U.S. manufacturing operations (Trump’s Economic Plan and Puerto Rico, 2024). This brief overview of Puerto Rico’s economy reveals the profitable opportunities in manufacturing and product production.
Figure 9: Puerto Rico: Gross domestic product (GDP) per capita in current U.S. dollars from 1989 to 2029
