In recent years, Venezuela has experienced a challenging economic and political panorama, significantly impacting the lives of most employed and self-employed.
Despite significant obstacles, resilience and creativity are contributing to develop a crop of budding and developing entrepreneurs willing to create a livelihood and eventual prosperity for themselves, their families, communities, despite the existing environment.
Given that most employee positions fail to adequately meet family needs, self-employment, with all its risks, has shown capacity to adapt to the country’s very dynamic economic and social circumstances. It is expected that their consolidated effort will slowly be felt in the upcoming years.
Here are some of the most noticeable areas of endeavor:
1. Technology
Technology is a key sector for development opportunities under the current state of affairs. Case in point:
• Online learning platforms and other education related applications to provide some support to the deficient state of public education, and to supplement in the private education needs.
• Healthcare diagnostic software such as telemedicine applications.
• Surveillance systems and fraud detection software.
2. Services
Services are a sector that has grown significantly in Venezuela in recent years. Service entrepreneurs are offering solutions to consumer needs, in the education, health, food transport and entertainment sectors. Hence personal and professional services: Service entrepreneurs in Venezuela are offering solutions to consumer needs in areas such as:
• Online courses, tutoring
• Online medical consultations
• In home nursing services
• Food delivery services and catering
• On call urban and interurban personal transport services.
3. Commerce
Commerce is a traditional sector that remains important for the Venezuelan economy. Business entrepreneurs are offering products and services to consumers, both locally and for export, in many cases in a cottage industry mode, as is the case with the cocoa-based products, as well as the export of sea food and other specialties.
4. Agriculture
Agriculture is a key sector for Venezuela's food security. Agricultural entrepreneurs are developing new production and marketing techniques to increase the productivity and competitiveness through the application of more efficient and sustainable irrigation systems, as well as the development of climate and pest resistant crops.
5. Tourism
Tourism is a sector with great economic potential Venezuela, given broad variety of offerings available in the country, catering to different visitor profiles, specifically:
• Ecotourism, adventure tourism.
• “People” tourism: historical tourism, gastronomic tourism, etc.
• Business tourism: congresses and exhibitions.
6. Marketing
Development of more efficient and accessible marketing channels in line with the current lifestyles, whereby transport and logistics need to adapt to challenges of gaining access to private means of transportation.
Profiling current entrepreneurs in Venezuela.
4 out of 10 are less than 40 years old, of which over one third are in the 18 to 25 age brackets. They tend to be more open and familiar with the world of technology, are more risk prone and hence a have greater capacity for change.
Close to 6 out of 10 are women. Women are increasingly present in the world of entrepreneurship as they seek economic independence and the possibility of reconciling work life with family life in an environment in which many households are currently under single parent management.
One out of every two entrepreneurs have at least completed at least high school or technical education, hence with more ability to access both information and resources.
6 out of 10 have work experience, providing their expertise to new ventures. Of these one third are 61+ years old, given that the current economic situation makes retirement not a realistic option.
Concurrently, this cohort and especially the more senior, represent an important target for honing their technological skills, thus another source of entrepreneurial opportunities.
Venezuelan entrepreneurs are characterized by their entrepreneurial spirit, their ability to adapt to change and their commitment to success. These entrepreneurs are motivated by the search for economic independence, innovation and the possibility of generating a positive impact on society.
The key occupational sources for potential entrepreneurs are in those sectors or professions most affected by attrition of contracted professionals or full-time employees, come from Education, Public Healthcare, Communication, technological and marketing activities and in most cases for having reached their top income in the organization worked for.
According to the Global Entrepreneurship Monitor 2022 Venezuela study, the sectors or professions that have suffered the greatest attrition of contracted professionals or full-time employees, specifically:
• Teachers, particularly those working or having worked in Public Education
• Healthcare professionals, with special emphasis of those working in the Public sector.
• Engineers, as a consequence of diminishing activities in the construction and petroleum extraction sectors, as well as the decay of the public services infrastructure, due to lack of resources and management.
• Communication and advertising sectors, due to decreasing activity, as well as state intervention of the media.
These professionals have decided to undertake business to improve their income and have greater control over their work life.
Entrepreneurship is an economic activity that is based on the creation of new ventur or businesses with the purpose of increasing income generation as well as source of economic self-reliance. This is a significant step away from historical state-dependent mentality pervasive both in the public as well as private sectors
