Entrepreneurship in hyperinflation economy.

[GabrielMD]

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]

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.

 

[Supercar]

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.