Quote: (09-28-2014 11:57 PM)anonymous123 Wrote:
Very true. But, the way it was explained to me was that you are best to either focus on Brazil, or find somewhere in the "everywhere else" of SA or Central America. The quote I received was "Brazil might as well be Hong Kong." And their economic might and advancements alone puts Brazil in a category where one should either commit to Brazil, or go elsewhere.
Might, definitely. Advancements, not so sure about that.
I do agree that it's Brazil or everyone else. Primarily because the sheer size of the domestic economy (might) means you can achieve plenty of scale before you need to start looking outside of the country, Brazil's protectionism makes it hard to enter as a foriegn company, and the language & cultural differences complicate cross border transactions a bit.
Quote: (09-28-2014 11:57 PM)anonymous123 Wrote:
- Bureaucracy is stifling. This makes it especially hard for start-ups, but it also serves as a barrier to entry once you've established yourself.
Amen. And likewise true in many other countries in SA (and was my experience where I was focused).
The ease of doing business rankings by the World Bank can give you an idea of what you're getting into. Brazil comes in at a pathetic 116 between economic heavyweights DR & Guyana.
Quote: (09-28-2014 11:57 PM)anonymous123 Wrote:
Very true, and don't disagree. The big difference here is that I should have been more clear that this is from the vantage point of someone coming from the USA. I totally agree that I needed to stick it out, and think I would have eventually been successful. But, I didn't pull out just because of the burn rate and painfully slow it is to achieve progress. I finally took a step back and said "what if I'm successful, what is the payoff?" I then compared that payoff to what I could achieve in the USA.
It wasn't easy to decide to cut bait. Despite what they teach in business schools, walking away from "sunk cost" is easier said than done. And, I probably could've walked away from "sunk cost" just fine. What really hit home for me was when I objectively took a step back and tried to asses "what would be the outcome if I poured these same efforts and resources in the USA, what is the reward vs. the exact same in SA?" Doing the back of the envelope math made me think I had the wrong strategy.
This is an excellent point and one I reflect on at times. I haven't started a business here (yet), but as an employee and investor I haven't covered my opportunity cost (at least financially) versus staying in the US. After three years on the ground I have some pretty good momentum and if things break right in the next three years my potential pay off is higher than the status quo (but also riskier). Of course my motive for expatting wasn't pure financial gain.
Quote: (09-28-2014 11:57 PM)anonymous123 Wrote:
- Labor laws are a huge risk. Fucking ridiculous. It's frequently better to keep an unproductive employee on the payroll than to fire them.
This is the one that really hit home for me. For some reason I thought things would be more lax. I think the same goes for permitting and regulation...I thought it would be easier...not even close. I will re-use your description: "fucking ridiculous".
Another anecdote: a friend of mine works for a large corporation which recently went through merger. As is always the case the new firm looked to reduce redundant workforce. Only problem is the employees that were laid off are winning judgements against the firm of 3-5x their annual salary. Now, employees that remain are basically asking to be laid off.