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Entrepreneurship in hyperinflation economy.

GabrielMD

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Dec 9, 2017
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Hi there friends,

I came here because i want to hear another opinion or a piece of advice. I am currently living in the worst economy in the world Venezuela. I am trying to organize the family business related to Health services, but things didn't look right. All the young people, around 20-30 years old is leaving to the country. I fell like there may be an opportunity in the middle of this crisis, but I am not sure if it is just me trying to do the opposite of people. Should I leave the country or should I stay to start my own entrepreneurship?. Should I stay and improve the family business? I've been reading a lot but I feel like I am stuck in the thinking process, generating a lot of ideas but not doing any. Is there any post regarding how to deal with this situation?. I am 27 years old, trying to figure out what to do in this situation. I don't know if another country was in the situation like mine. I am working my way to the Fastlane even though I am not in the best economy to do it.

Thanks,
 

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Kak

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Welcome. The story of Venezuela should be an example to the growing population in the USA that supports similar economic policy.

As far as hyperinflation is concerned... I have always assumed multi-family real estate would be a really good bet. It’s a hard and useful asset. As the economics of home affordability change, there will always be a group renting apartments. Next, it’s relatively easy to leverage your purchase of real estate. Your rents and property value would go up and up, yet the amount you owe wouldn’t.

I’d say it’s pretty excellent capital preservation.
 
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Supercar

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What your country is going through is nothing new. Most countries in the world had periods of hyperinflation. All, or almost all, of your neighbors to the south went through this within your parents, and perhaps even yours, lifetimes. Google "hyperinflation".

I was in one of those young guys who chose to leave. There was no rule of law and order. The only good businesses at that time were stealing (white collar) and racketeering (blue collar). I wanted none of that.

But many people who chose to stay came out very poweful out of those periods. They, invariably, were in positions of power, and eventually close to the government. Everyone else was buncrupted, run out of business, or sometimes killed.

Study some history and see whether you want to continue living in the proverbial "interesting times" , or not really. Only you can tell.
 

Kak

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Yeah, borrowing is awesome during hyperinflation. That is, if you can find someone to lend you the money.
You would have to have already done the borrowing.
 
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GabrielMD

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Dec 9, 2017
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Houston
Welcome. The story of Venezuela should be an example to the growing population in the USA that supports similar economic policy.

As far as hyperinflation is concerned... I have always assumed multi-family real estate would be a really good bet. It’s a hard and useful asset. As the economics of home affordability change, there will always be a group renting apartments. Next, it’s relatively easy to leverage your purchase of real estate. Your rents and property value would go up and up, yet the amount you owe wouldn’t.

I’d say it’s pretty excellent capital preservation.
Right now nobody lends you money, the economy is in the worst circumstances. We earn money in our own currency and is worthless. The real state in the socialist government for renting purposes is not possible because the property could be stolen by the lender. What I see is flourishing are the Local Fast Food companies.
 
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GabrielMD

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Dec 9, 2017
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USA #1! All other countries were either too small or had the same socialism as my old one.
I a few months ago I stay in the USA but there were no Immigration possibilities that allowed me to work legally. I don't know if I should insist on living in the USA or going any other country that doesn't kick me out, I want to build a future but I am not sure if living in a Socialist Country that will be possible. I don't have any other nationality besides Venezuelan.
 

Kak

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Right now nobody lends you money, the economy is in the worst circumstances. We earn money in our own currency and is worthless. The real state in the socialist government for renting purposes is not possible because the property could be stolen by the lender. What I see is flourishing are the Local Fast Food companies.
Honestly, with a disaster like this going on, I don’t think you are going to have to wait very long for significant change.

Move if you can.
 

MJ DeMarco

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I have always assumed multi-family real estate would be a really good bet. It’s a hard and useful asset.
Not when the government confiscates property rights to serve the "greater good" -- Venezuela doesn't exactly have a good history with property rights.
 

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Stargazer

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Not sure how easy it is for you to come here these days but the UK.

Big latino (hope that is not a derogatory term) community in London of course.

Then there would be Australia, New Zealand, Canada, Hong Kong, Singapore.

Dan
 

jcvlds

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Hey Gabriel, you can also look into neighboring Latin American countries. I just recently finished doing a personal trip abroad for some months in South America (except Vzla unfortunately) and met and saw loads of Venezuelan immigrants into every country I went to (Colombia, Peru, Bolivia, Chile, Argentina, and Uruguay). They were always welcome and those countries were super opening to the people as long as they looked for jobs right away and got productive (not bringing violence into their countries). Like someone already mentioned, most of these countries have gone through something similar so they relate to what is happening in your country right now.

As per opportunities, I would go to either Colombia or Chile. I saw a vibrant community and growing economy that is on it's way up.. lots of pro-entrepreneurial and capitalistic support from the governments and investors. You should look into some of those countries and see if one interests you.
Also helps that they all speak your same language :p so you wouldn't have to have that setback if you going to a country that has a foreign language to you.

As per your question for opportunity ideas within Vzla.. I'm sure I can't be much help :( I cannot summon the empathy to really know what it's like living there right now and how the environment truly is.. so anything I say will be nothing more than an idea driven by assumptions and biases.. Best of luck man and sorry about what is happening down there.. for what it's worth, in Mexico our leading candidate for next elections is a big supporter and follower of Chavez/Maduro.. so I fear for Mexico as well
 

Kak

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LittleWolfie

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What about some kind of export or freelancing? That way you can get foreign hard currency.

I'm not sure on the avalibilty

Revolut lets you hold and transfer between various curriences cheaply,accept and send SEPA and link to your bank account. You don't need to go abroad and you can have a virtual card, so you can keep your income in $, € or others (I like the Norwegian Krona as a safe haven, low inflationary currency) changing to Bolivar at the last minute as payment is due.

PayPal lets you hold balances, in other currency in most jurisdictions. It's not as safe as a bank, but it's not hyperinflationary either.

As a last resort what about crypto? You can always buy gold or silver with it.

That's a good store of value historically.

Maybe you can service Spain or the Spanish speaking community abroad or Venezuela expats in some way?

They would at least have hard currency. Maybe you could provide outsourced Spanish speaking VAs for Spanish companies (maybe the night or swing shift)
 

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