A story about how love for roots and family motivates many entrepreneurs to build their dreams and paddle against the odds in difficult-to-navigate waves.
Investing in Venezuela from Abroad: A Story of Love for Roots and Dreams
There were many Venezuelans who decided to leave the country with enough reasons to seek a better future, opportunities and job growth and thus offer financial and economic hope to their homes and families.
Helping with basic sustenance was the mission of millions of Venezuelans from 2012 to 2019 due to the high cost of the basic food basket and the shortage of necessities one of the most dramatic crises in the country.
Currently, shortages of basic products have progressively disappeared but their costs are high because too many products are imported. It is no secret that large industries such as Polar companies remained for several years producing what was within their possibilities due to the lack of raw materials.
By 2015, two of its plants were paralyzed, decreasing 25% of its products nationwide.
Venezuelans Abroad Investing in Their Home Country Through Bodegones and Other Businesses
It was then that Venezuelans living abroad decided to take the risk and invest in their home country with the aim of supporting their families, leading to the creation of “Bodegones”, small and large businesses selling a variety of items such as textiles, technology (e.g. Pedidos Ya, Yummy), gastronomy and food.
Such is the case of a Venezuelan living in Chile who came up with the idea, together with his family, of creating and growing a coffee company known today as Café JP.
This young man is Carlos Beiken, who at 33 years of age has managed, together with his family, to see the prosperity of his product, despite the problems that the country is experiencing.
I had a conversation with Carlos full of questions and this interesting topic came up that gives us a different perspective on what it is like to be an entrepreneur in a country like Venezuela.
What motivated you to invest in Venezuela?
In terms of the world economy, the pandemic caused a revolution in the business sector in Venezuela. I always wanted to return to Venezuela, but not as a salaried person. So I studied how a product gave its rotated in a market such as the coffee market.
As a coffee-growing and producing country, I saw the opportunity to invest and promote what my parents had started… besides, it was also a family issue that led me to make that decision.
What are the legal requirements for registration?
The creation of a company in this field requires a lawyer specialized in company-level procedures in terms of requirements, everything related to the commercial registry, initial inventory, letter to the commissioner (signed by the public accountant), RIF (Unique Taxpayers Registry) and publications.
How much does it cost?
It had a cost of 1,000 dollars approximately with all the management, at the moment I do not know the cost of this procedure.
How has this road been traveled so far at a social economic level and what are the challenges you are facing day by day?
The country’s economy is struggling to stabilize, the Venezuelan central bank has decided that the dollar is part of the currency that is handled in the country and this allows us as traders to maintain the value of the product and not suffer the depreciation that is experienced daily by inflation and devaluation of the Bolivar.
The issue of the anarchy and the abuse of the Venezuelan authorities is a discouragement that we live with daily and the only thing left is to wet the hand to let us work quietly, at the level of permission there are many obstacles on the part of the government is exhausting.
The coffee industry does not pay taxes, that is the support received from the state, on the other hand, there is an endless number of permits which overshadows the only support.
Entrepreneurial Path in Venezuela: Challenges, Issues and Prognosis
The most difficult part of this entrepreneurial path in a country with so many problems is the anarchy, the unstable economy, inflation, crime, the issue of payments in Venezuela due to the non-existent foreign exchange facility and the constant monetary update by the BCV, the issue of roads and gasoline, among many others that we live daily, although the country’s prognosis is a roller coaster we continue betting on our dream.
We hope that Venezuelans abroad who risk investing in Venezuela continue to reap success, providing jobs, helping to revive the country’s economy and bringing light hope in the business and commercial sector for a prosperous Venezuela.
F.A.Q: Countries Investing in Venezuela
Venezuela is an oil-rich country in South America that has recently experienced an economic downturn that has caused it to become dependent on foreign investment.
The country has been struggling to remain economically stable due to various political and economic factors, including hyperinflation and a decrease in oil prices. In recent years, many countries have seen an opportunity in Venezuela and have chosen to invest in the country to promote economic development.
The US, China and Russia have all made investments in Venezuela, not only financially but also in the form of foreign aid. Before the sanctions were put in place in 2019, the US had invested billions of dollars into the economy of Venezuela. This injection of money allowed for the development of key infrastructure, such as power plants, roads, hospitals and other essential services.
China has also invested in Venezuela, primarily in the form of loans, to gain access to the country’s oil resources. Russia, on the other hand, has provided financial assistance to Venezuela to maintain its influence in the region.
In addition to these countries, other countries have also chosen to invest in Venezuela. For example, Brazil, Colombia and Turkey have all provided investments in the form of financial aid, development projects and humanitarian aid. These investments have been made to help the Venezuelan people, as well as to foster mutual economic growth between the two countries.
Overall, foreign investment in Venezuela has been beneficial for the country. It has provided much-needed financial assistance and has helped to create jobs and economic growth. As more countries continue to invest in Venezuela, the country’s economy will likely continue to improve.
Can U.S. citizens invest in Venezuela?
Not at this time, U.S. citizens cannot invest in Venezuelan securities or any other financial products issued in the country due to U.S. sanctions against Venezuela.
Can foreigners own land in Venezuela?
According to the 13th article of the Venezuelan Constitution:
The vacant lands existing in the federal dependencies and in the river or lake islands may not be disposed of and their use may only be granted may not be subject to sale and their use may only be granted in a manner that does not imply, directly or indirectly, the transfer of ownership of the land, directly or indirectly, the transfer of ownership of the land.
Therefore, foreigners cannot own land in Venezuela. Instead, they may be able to obtain a long-term lease or concession from the government.
The granting of a concession allows a foreign investor to use the land for commercial purposes. Furthermore, foreign investors may also be able to set up a corporation in Venezuela and acquire a Venezuelan company owning land in the country. However, this does not give full legal ownership of the land, as the company must still be owned by a Venezuelan
Is the U.S. helping Venezuela?
Currently, the United States government is not providing direct assistance to Venezuela. The U.S. has, however, imposed sanctions on the Venezuelan government, including on the state-owned oil company PDVSA and has provided aid to countries in the region hosting Venezuelan refugees.
What are 2 issues Venezuela is facing?
- Venezuela has seen an unprecedented rise in prices of goods and services due to the country’s rapid devaluation of its currency, the Bolívar. This has caused severe hardship for Venezuelans who are struggling to afford necessities such as food and medicine.
- Venezuela is currently experiencing a political crisis due to the conflict between President Nicolás Maduro and the opposition-led National Assembly. The government has cracked down on protest and dissent and there have been reports of human rights abuses.
Is Venezuela still rich in oil?
Yes, Venezuela is rich in oil. It has the world’s largest reserves of oil, estimated to be around 300 billion barrels.
In addition to oil, Venezuela is also rich in other natural resources. It is home to vast reserves of minerals such as iron ore, bauxite and gold. It also has some of the world’s largest deposits of coal and natural gas.