International business expansion is no easy task, but having a network of contacts that builds trust is a good way to accelerate the process. This is precisely what the Impact Trade platform offers, which already includes more than 500 companies from 28 countries worldwide.
After embarking on the path of internationalization, Ecofactory, an Argentine company that manufactures reusable, eco-friendly, recyclable, and biodegradable bags, was targeting the Uruguayan market, specifically Ta-Ta Supermarkets.
Months passed, and contact with the TIA Group supermarket chain remained relatively distant. It wasn't until March 2024, after participating in a business meeting in Uruguay, that Martín and Federico Emiliani—partner and commercial director of Ecofactory—met Virginia Suárez, the former chairwoman of HSBC Bank Uruguay, who connected them with the Ta-Ta supermarket. Following this connection, Ecofactory signed a contract with the supermarket chain, which today represents US$370,000 in annual sales for the company in Uruguay.
This business roundtable was part of the Impact Trade event, "a platform that accelerates bonds of trust and supports the internationalization of companies seeking to generate impactful business," explains co-founder Sebastián Rodríguez.
"It's a very innovative way of doing business—especially in the field of international trade—always based on these relationships of trust, which are essential for us. Given that the local market isn't where we're used to, when entering another market, it's very important to have those networks of trust that allow us to scale," explains the Chilean executive.
To date, Impact Trade has held events in Buenos Aires, Montevideo, Sao Paulo, Barcelona, Tuscany, and South Africa. This year's event will be held in Santiago, Chile, in May.
"We've held seven events in four countries on three continents and have formed an international network of positive-impact businesses of more than 500 companies from 28 countries. This allows, for example, a European entrepreneur who wants to reach Latin America to find a network of entrepreneurs who welcome and trust them because they know that, otherwise, if the other entrepreneur reaches a European market, the opportunities and networks will be there," says Rodríguez.
Building this certainty when an entrepreneur enters a new market is essential for the survival of businesses, especially small and medium-sized ones, with a positive impact. In this sense, Sebastián Rodríguez believes this is highly relevant in a world where nearly 60% of global GDP is international trade. "If we're thinking about addressing major challenges like climate change, social, or environmental issues, international trade can be a support in that regard. And that's what Impact Trade is for, as this private platform that allows companies to better internationalize," he notes.
BIG AND SMALL WITHIN THE CHAIN
The companies within the Impact Trade network come from diverse industries and are of various sizes. On the one hand, there are small and medium-sized enterprises seeking to internationalize, and on the other, large companies seeking to expand their value chain in areas of sustainability, innovation, and governance.
“It's increasingly necessary to generate impact, and we're seeing that many international solutions can support the challenges facing different Latin American countries. There are certain challenges in Argentina, Uruguay, and Colombia, Peru, and Chile as well. Obviously, there are local companies that can provide solutions, but if we combine knowledge, capital, and foreign talent, we're more likely to be able to address these major challenges we're experiencing,” says the co-founder of Impact Trade.
This is how cases like Ecofactory emerged, which managed to place its reusable and biodegradable bags in a supermarket chain, where until a few years ago the use of single-day plastic bags was common practice.
There's also the case of Agua Segura, another Argentine startup that, with a business model that leverages science and technology, optimizes designs, predicts, and monitors the impacts of the global water crisis. The firm, which is part of the Impact Trade network, works with multinationals such as Sura, Google, and Microsoft, helping them become "water positive," seeking solutions both for their operations and to contribute to the communities that need it most.
“There are companies that are deeply involved in social, environmental, cultural, and even technological issues. Specifically, we're seeing many startups that are generating a positive impact through technology, and the good thing about that is that they're scalable. Data shows that, ultimately, the vast majority of Latin American companies are already starting out with regional or global strategies from the start,” says Rodríguez.
The study in question is Global Latam 2024, conducted by ICEX-Invest in Spain and the Ibero-American General Secretariat, which indicates that Latin American technology startups are adopting an early internationalization model unprecedented in the region. In the case of Chile, 58% of startups adopt a regional or global strategy.
SOFT LANDING WITH LOW RISK
In addition to organizing events where companies of all sizes can connect with each other, the Impact Trade platform provides a path for successful landing in their destinations. “We have managed to reduce the risks of entering new markets. By participating in the events, entrepreneurs understand—first—how to soft-land in that market. Second, they understand market intelligence issues; they begin to understand the necessary knowledge of that market, which is distinct from their home market. And third, based on all of this, they gain access to the trusted networks necessary for their successful landing,” explains Rodríguez.
In this way, entry risks are reduced for companies because they already have an initial foundation for internationalization. “There are a number of services that we can support them in this process on a more permanent basis. But what these events have allowed is to eliminate a series of barriers that can often be cultural, bureaucratic, or tax-related. This is very important because when you do business and generate a solution that contributes socially or environmentally, what we have noticed in practice is that there is a much greater willingness on the part of all parties to do business, even if they come from different cultures or different countries,” says the Impact Trade executive.
For Sebastián Rodríguez, who together with Argentine Pedro Tarac (co-founder of Sistema B) created Impact Trade in 2021, the platform has become a useful tool for generating impact and, at the same time, selling more. "This goes beyond being a B Corp. They can be traditional companies that need to sell internationally and for those sales to be in line with social, environmental, and economic aspects. There we found that there was an opportunity, and many entrepreneurs have joined. There is an EY study that indicates that the second concern of companies, after technology with all these changes that are taking place with artificial intelligence, is expanding markets. Opening opportunities is key for different reasons, whether due to government issues in some Latin American countries or because they are very small markets, like Uruguay, for example. There are various reasons that focus on the company not staying only in the same city or in the same place," he concludes.
