Despite the political and economic crisis that hit Venezuela since 2012, younger professionals that can’t find jobs in their specific fields are doing huge and cool things as entrepreneurs. Venezuelan entrepreneurs have stepped up efforts to expand, despite branding setbacks.
The last study of the Global Entrepreneurship Monitor reveals, that Venezuela is among the top 10 countries in Latin America with the largest number of small businesses created each year. Around 2.000.000 of new businesses are created in Venezuela each year since 2009. However, half of this number of small businesses doesn’t mature till about four years. This is because of the increasing cost to incorporate a business in the country. In other scenarios, most Venezuelan entrepreneurs leave the country after a year in business to set up businesses elsewhere where cost of incorporation is reasonable. Business news reports indicate that the situation has become unbearable.
Venezuelan Entrepreneurs Face Business Setbacks
Mariam Krasner, director of Pronóstico Consultores, says “Venezuelan entrepreneurs have to wait for a period of 6 to 9 months to register a business brand. In United States the procedure takes only 6 days and in México around one month.”
Krasner also indicated that in Venezuela, to obtain electricity connection for a new business could take around six months and building permits could take a year. In that lapse, Venezuelan entrepreneurs find a way to 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 are improvised 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 that the new projects are facilitated properly. Venezuelan entrepreneurs carefully calculate their business growth strategies and focus on markets that ensure a rapid expansion of their businesses.
The search for opportunities for Venezuelan professionals has allowed the creation 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 of 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 to be successful in other countries where there is full support for entrepreneurship.
Photo Credits: archive.globovision.com / wikipedia.com