HomeData UNÚN data: almost 60% currently develop a business

ÚN data: almost 60% currently develop a business

Sale of food and beverages covers 40% of the projects. The greatest need is financing.

A venture is, by definition, something new. It is an initiative, generally individual, that seeks to carry out a business independently. They are small companies that aspire, when they develop innovative ideas, to expand and generate impact, both in the individual environment and in the economic context of the sector. Although the term refers to growing companies, small individual initiatives that are not necessarily part of what is called "formal commerce" are also called entrepreneurs. In Venezuela, as in the rest of the world, this notion has become very popular and has set an economic trend in recent years. The State has even developed programs and legislation to promote entrepreneurship initiatives as an economic engine.

Article 4 of the Law for the Promotion and Development of New Entrepreneurship defines the term as: "Economic activity for profit carried out by one or more persons, which acquires legal personality with registration in the National Registry of Entrepreneurship and has a duration of up to two years”. From here it is understood that the objective is that all these initiatives form part of the formal economic activity and are under institutional regulation. It also specifies that these are new projects and that after two years they should be considered in another way, whether they are small or medium-sized companies.

It is common to see that many people dedicate themselves, often in parallel to a formal work activity, to the development of a small business. Most often these are activities of buying and selling goods. There are also those who do not have a job and dedicate themselves exclusively to what they call their “entrepreneurship”. Last year, en Últimas Noticias we did a survey that showed that more than half of the people live on their salary plus “complements”, and one of these complements is entrepreneurship. We also found that almost 12% are dedicated exclusively to a personal endeavor.

How many?

In a new survey of the audience of latestnews.com.ve and our social networks we ask people about the topic of entrepreneurship. We formulate several questions with the intention of getting a little closer to the current picture in this matter. How many people are in these fights? How do they do that? In what areas? How are you doing? Between Monday, July 4 and Thursday, July 7, 743 people participated and the results are as follows.

The first question was, directly, if people currently develop any entrepreneurship. It turned out that an important majority, 58,7% of our audience, affirms that they are currently carrying out a personal business project. We decided to immediately question those who answered no, to find out if they had previously developed a business that was later abandoned. We find that of that 41,3% who say that they are not currently in the entrepreneurial wave, the majority, that is, 61,2%, said that they had tried it.

The lifetime of these failed ventures is quite diverse. The most common answers, in similar proportions, were that their initiatives lasted “more than three years” (26,9%) and between six months and one year” (26,1%). Then come those that lasted "less than six months", with 19,3%; those who endured "between one and two years" reach 18,5%; and the other 9,2% say that theirs lived "between 2 and 3 years".

When the reason that led them to abandon their venture was requested, the vast majority, that is, 79,8%, indicated that the problem was that they did not have the capital to grow the business.

In second place, far away, are those who said that the matter did not produce profits. We can see that people, even after failure, trust the profitability of their idea and identify the difficulty in the financial area.

Now we will dedicate ourselves to the group of current entrepreneurs, those who answered yes to the first question of the survey. The first thing we asked them was to indicate the lifetime of their enterprise, obtaining that 31% said that it is “more than three years old”. 21,1% stated that they have “less than six months” and 20,4% that their business is “between one and two years old”. 17,7% have been active "between six months and one year" and 9,9% are "between two and three years" of seniority.

What are they doing?

When we question the participants who defined themselves as entrepreneurs in which areas they carry out their activity, we find that a resounding 40,8% is dedicated to the area of ​​food and beverage sales.

The sale of merchandise of any kind, other than food, beverages or textiles, covers 6,6%. Repair services, such as carpentry, plumbing, etc., add up to 6,4%. The sale of clothing and footwear is the activity of 5,4%. Another 5% is dedicated to professional consulting. 4,4% say that they sell homemade items, such as jewelry, handicrafts and ornaments. Those who teach different subjects are 3,7%. 3,4% is devoted to content creation; 2,1% to the production of events; and 1,8% to logistics services, that is, taxi, mototaxi or delivery. Then come the professional services, or freelancers, which were not included in our list of options, which range from hairdressing and other cosmetic services to private security. They represent 13,1%.

Here it is pertinent to reinforce the clarification that we frequently make. This survey does not claim to be representative of the Venezuelan population in its entire demographic, socioeconomic, or territorial distribution. This is a digital survey answered by the audience of Últimas Noticias, so the population that these results describe corresponds to an adult population, with internet access and newspaper reading habits.

Another interesting fact corresponds to the fact of whether the initiative is developed by a single person or several in association. The result is that 69% say they carry out their business alone, while the remaining 31% say they have partnered with one or more people.

Regarding the dedication of entrepreneurs to their business, we find that 44% say that they develop their business while maintaining a formal job. Meanwhile, 40,1% started their project without having a job and dedicate themselves exclusively to it. The remaining 15,9% state that they left their old job to take care of their business full-time.

How do they do that?

We already know what proportion of our audience are entrepreneurs and what their initiatives are about. Now, it is interesting to know what resources they use to manage their projects. We asked if they use technological tools in their businesses and 69,3% answered yes.

We require a little more detail in this regard and ask about what tools they use. It is not surprising at all that messaging applications, such as WhatsApp and Telegram, are in the first place with 88,1%. Then come social networks (Instagram, Facebook, Twitter, etc.) with 58,9% and email with 40,1%. 15,6% say they use a web page; 14,2% use some graphic design application or software and 10,9% some video editing software. Only 6,3% use delivery applications to serve their customers.

Normally it is thought that a business needs a local or office to develop; although, after the pandemic, perhaps that idea of ​​common sense has changed a bit. It turns out that 81,9% of the people who responded to our survey and claim to be running a business say that it works “from home”. Only 18,1% say that they use a business premises or an office.

We then address the issue of profitability. Of the people who currently have an active business, according to our survey, a little more than half, that is, 52,8%, say they are satisfied with the benefits that this project generates. This means that 47,2% consider that the performance is not optimal.

Everyone knows that entrepreneurship is not an easy thing and that there are many risks and needs. Our survey ended by asking the entrepreneurs about what is the main need of their project, that is, what thing do they think they most need to improve it. The data is overwhelming: 98,8%, that is, almost all the entrepreneurs in our survey, affirm that their project needs financing. This coincides with the data reflected above, which says that around 80% of entrepreneurs whose project failed asserts that the problem was the lack of capital to grow.

Just under half, 41,3%, say that their business is in need of publicity and promotion. 26,7% of these entrepreneurs are aware that they require financial training to develop their initiative and 14,4% affirm that they should receive training in specific areas that have to do with the activity in which they are dedicated.

As we can see, the panorama of entrepreneurship is, moreover, interesting. There is good potential and plenty of initiative, but there are also clear challenges and needs. The Venezuelan State, as stated at the beginning, has emphasized policies for the promotion and development of enterprises. As part of this effort, it has even created a web platform, undertaketogether.gob.ve, where entrepreneurs can register and thus access a set of resources that range from access to financing to advice, legal support and training. In the future we will see what weight the ventures will have in the process of economic recovery in Venezuela that this year 2022 begins to appear.

Angel González
Journalist. I write #ElInformante and #DatosÚN in Últimas Noticias.

Leave a comment