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How to undertake in times of crisis

Are the "fat cows" over? Despite the challenges, difficult circumstances also open opportunities in Latin America.

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process. Opinions expressed by Entrepreneur contributors are their own.

Let us recall a bit the international economic panorama that we have had to experience during (almost) this last decade: on the one hand, the subprime mortgage crisis that exploded in the United States in 2007-2008 and that spread to the industry and everything. the financial sector of that country; then, the "transmutation" of this crisis into the sovereign debt problem that has hit different countries in Europe, particularly those in the euro-zone (Greece, Spain, Italy, although the list is much wider) in which it has been considered the worst economic crisis since the Great Depression. On the other hand, the growth of China that continued to drive the world economy and the consequent economic boom of commodities that triggered the Latin American economies during that period.

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And now? The "signs" (although we could well say "the facts") of the cooling of the Chinese economy, the five years of "declining growth" of various so-called "emerging countries" (Russia, Brazil, South Africa, India) the falling raw materials In a tailspin, the price of oil remains on the ground, the losses in China's stock markets do not remain alone, but are accompanied by the stock markets in the United States, Europe, Japan, The United States has had on the rise in interest rates, among others, they sweep several headlines in the economy sections of the newspapers.

Although a "bubble" has not yet burst as it did before, the truth is that doubts and skepticism about the global economy have only increased. In other words, the unstable equation of the international economic crisis that has not been closed and the serious political conflicts that are going through the world (war in Syria, Ukraine, immigrants arriving by hundreds of thousands in Europe, conflicts within the Union European, etc.) we must now add these other factors.

If we focus on Latin America as a region, the situation seems to leave much to be desired. The (de) growth projected for this year is around the average of −0.3% .

How to undertake in these circumstances?

Articles on entrepreneurship in times of crisis often insist that, despite the challenges, difficult circumstances also open opportunities: although it is not a propitious time to make risky moves because risks increase and income falls, it is also true that adjustments in the economy are opening up business opportunities. In addition, these periods serve to display creativity, take care of customers and, with proper planning, down-to-earth and asking the right questions, you can take advantage of them.

And, of course, it is true that many entrepreneurs have managed to overcome very difficult economic times, but it is also true that many others have fallen by the wayside. The difference between one and the other is in the strategies they have implemented and how they adapted to the new circumstances. So beyond the general advice that we usually find, we are going to present you some more concrete ones focusing on this new scenario for our specific region.

1. The economies of different countries move at different speeds: although the outlook is complex for all countries, there are some that are growing and others that are not. With its limitations, it is a fact that the United States is growing, so that some of its trading partners in the north of the region have support and impulse (especially those that are favored by tourism and remittances such as Mexico and Central America) . If your venture can establish a bridge to them, you have to target those countries. Furthermore, some nations are more dependent on exports than others, which have a strong domestic market.

2. The institutional organization of the different countries is also uneven: some countries have stronger and more stable institutions, which makes them more legally and commercially secure: Chile, Colombia, Mexico, Peru, among others, continue to be more predictable than Venezuela, Argentina or Brazil (with its current political instability).

3. We must be attentive to the reforms that are being developed: to face the new challenges and since they cannot continue to depend on one or a few export products, the different countries are making bets of diversifying their economies. One of the investment fields is infrastructure, since they need to improve their connectivity to compete in the world market. An alternative is to target businesses that are linked to these growing fields: there is a willingness to invest resources there.

Other measures that are being implemented in a generalized way are tax reforms so that more people and companies pay taxes based on their income. You have to be attentive to these changes to protect your money and that of your company through accounting advice.

4. Other tips concern the adaptation and diversification of your own business or undertaking: you can find different strategies in this regard on our Master Marketing Latin America website by clicking here .