Starting a Business Without Fear of Failure: The Profile of the Venezuelan Entrepreneur Presented by IESA and UCAB
IESA and UCAB presented the findings of the Global Entrepreneurship Monitor in Venezuela, a study offering a profile of the context in which Venezuelan entrepreneurs thrive or fail.
TL;DR
- The Global Entrepreneurship Monitor in Venezuela (GEM Venezuela 2025) study reveals a decline in early-stage entrepreneurial activity despite an increase in the intention to start businesses.
- Approximately 1.3 million entrepreneurs were lost in Venezuela within a year, with the total number of entrepreneurs dropping significantly from 2.7 million in 2024 to 1.4 million in 2026.
- The primary motivation for 88% of Venezuelan entrepreneurs is to "earn a living" due to the scarcity of well-paid formal employment.
- A lack of fear of failure is a key characteristic, with only 1 in 3 entrepreneurs hesitating to start a business due to fear of losing time, money, or effort.
- Lack of financing, particularly after self-funding is exhausted and profitability is not evident, is a major reason for business failure, with 19% closing strictly due to this issue.
- High operational costs due to failures in basic services (water, electricity, fuel) and the burden of fiscal load and bureaucracy deter many from formalizing their businesses.
- Recommendations include tax exemptions for new businesses, simplified registration processes, creation of microcredits based on transactions, and fostering associativity among entrepreneurs.