If you’re in business to make money, then you want to sell to customers who are interested in what you offer, right? And sometimes those customers are not local. They might be in another county, state or country. If you’re looking to expand your business, you’re apt to consider new markets, such as areas of Latin America– Brazil, Argentina, Peru, Panama, Venezuela, etc.
Are there risks of doing business in Latin America? Certainly– but that’s true when doing business anywhere. From bad weather causing shipping delays to different currencies and languages, trade and business can become intricate and sometimes hard to navigate with all the little nuances of different places and different people.
So, Latin America has some risks. What are they?
Language Barriers
For starters, there can be a language barrier. For instance, you might speak English but they speak Spanish or Portuguese or another language. This is an obstacle that can be overcome, but it does make doing business a little more difficult when there are language (and meaning) differences.
Bureaucratic Hurdles
Next, there’s something in Latin America that’s also in other parts of the world: bureaucracy. That’s when there’s just a lot of “red tape” or “hoops to jump through” in order to get things done. Instead of a transaction involving two people, bureaucracy demands that a deal have several people doing paperwork and getting paid. And bureaucracies move slowly– a needed permit to do something might take weeks or months to be approved! Ugh. Not all governments operate efficiently.
Corruption
What about corruption? You know it’s bad when governmental officials will accept bribes to get things done. Unfortunately, Latin America is known for corruption in both the private and public sectors. Therefore, corruption is a risk. The cost of doing business may be higher in certain parts of Latin America if there’s a “fee” added on just so someone gets paid to “help you out.”
Funding Challenges
Finally, funding availability may not be as readily available in Latin America as it is in Europe or North America.
Despite risks, consider doing business in Latin America with the help of SMG Consulting Services of Florida and Paraguay. There’s money to be made in Latin America. Email info@smgconsultingservices.com to ask about risk assessment services.
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