Amidst setbacks in formalizing their businesses, Venezuelan entrepreneurs are pushing hard to ensure their business brands gain recognition.
Amidst the political and economic crisis that hit Venezuela since 2012, younger professionals that can’t find jobs in their specific fields have stepped up efforts to expand, despite branding setbacks. Story from Caracas addresses the dilemma of entrepreneurs in Venezuela.
The last study of the Global Entrepreneurship Monitor reveals Venezuela is among the top 10 countries in Latin America with the largest number of small businesses created each year. Around 2,000,000 new businesses emerge in Venezuela each year since 2009. However, half of this number of small businesses don’t mature for about four years. This is because of the increasing cost of incorporating a business into the country. In other scenarios, most Venezuelan entrepreneurs leave the country after a year in business to set up businesses elsewhere where the cost of incorporation is reasonable. Business news reports show the situation has become unbearable.
Venezuelan entrepreneurs face business setbacks
Mariam Krasner, director of Pronóstico Consultores, says “Venezuelan entrepreneurs have to wait for 6 to 9 months to register a business brand. In the United States, the procedure takes only 6 days and in México, around one month.”
Krasner also showed that in Venezuela, getting electricity connection for a new business could take around six months and building permits could take a year. Because of these setbacks, Venezuelan entrepreneurs leave the country to set up businesses in other countries.
Venezuelan entrepreneurs are passionate. In most cases, they don’t have funding to start their businesses. They rely on contributions from family and friends as business capital to start their businesses. There is the perception that Venezuelan businesses have no business foundation, which is really not the case.
Although there are no business schools to train entrepreneurs in Venezuela, private companies offer workshops on small business ideas, budget management, and staff management to ensure the proper facilitation of new projects. Venezuelan entrepreneurs carefully calculate their business growth strategies and focus on markets that ensure a rapid expansion of their businesses.
Search for Venezuelan professionals
The search for opportunities for Venezuelan professionals has allowed the creating of small businesses dedicated to the manufacturing of clothing and footwear to a greater measure. Venezuelan entrepreneurs also focus on the manufacturing of natural products that promote the breeding of farm animals.
Entrepreneurs in Venezuela are accustomed to overcoming obstacles to make their businesses survive. The entrepreneurs face day-to-day legal uncertainties resulting from untimely changes in business rules and regulations. The recessive economic environment and lack of support for the formation of new businesses also add to this dilemma.
Despite these challenges, Venezuelan entrepreneurs rely on effective business models. In addition, they are hard-working. These qualities help them become successful in other countries where there is full support of entrepreneurship.
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