Business Opportunities in Puerto Rico
The economy is the study of how people choose to distribute scarce resources to satisfy their unlimited desires. Entrepreneurs are the mechanism by which the economy converts this demand into supply. They recognize consumer wishes and see economic opportunities to satisfy them through the development of new products and services. John p. Kotter, Benemérito professor at Harvard University states that "21st century companies cannot be directed with twentieth century structures and executives of the nineteenth century". Therefore, there are no bad companies, there are battered companies. Mattered companies are those that are formed by people who do not know how to read the little available information or know how to carry out good activities with existing resources. However, entrepreneurship is the best way to grow economically, be independent and have a quality of life according to our expectations, which implies developing a culture of entrepreneurship aimed at overcoming the resistance of some people to stop being dependent on federal funds. Many multinational companies such as Johnson & Johnson, Mariot, Ford and even Wal-Mart were born as family or small-scale businesses.
Competitiveness is not an exclusive issue of the private sector, government agencies must aspire to be more agile. The idea of the concept of competitive advantages is that the company always seeks to have these, and that it reinforces and takes advantage of what it already has. Since 2007 the island is included in the Global Competitiveness Report (2007, 2008, 2009) published by the World Economic Forum. We started in position 36, in 2008 we were in position 41 and for 2009 the country was in position 42. Let us ask ourselves why we are not even included in the list. Fortunately, SMEs have become a decisive factor for the stabilization of society, the quality of the economic and institutional environment and the dynamism of private activities through the creation of companies within a greater competitive framework. This is recognized by the New York Federal Reserve Bank after conducting a study that confirms that approximately 80 percent of private sector workers in the country have any microenterprise as employer. It should be noted then that company and the market respond to two different schemes. While in the company there are hierarchical relationships, horizontal interactions predominate in the market. Neither the company nor the market are neutral. The one is not better than the other. The moment, the place and the circumstances depends. Sometimes it is preferable. Both alternatives have transaction costs. The company structure and business dynamics are chosen, depending on the circumstances, the most convenient path. The structural conditions of companies are always changing.
Puerto Rico has a reliable infrastructure, both energy and water supplies and adequate communication and transportation systems. We have defined our labor laws. We are very lucky to have many university systems that constantly supply us with a trained workforce. We are not a low -cost country, but we have the talent to compete and we have to position ourselves in highly technological areas. In fact, the island is recognized globally by its expert opinion in a diversity of fields, particularly in quality control and regulatory compliance in everything that has to do with biosciences. "Microenterprise", "small and medium businesses", "emerging companies". Concepts aimed at stimulating that people are inserted into self-management, but, all are programs in diminutive, in 100 x 35. It is urgent that the government also establishes high relief programs aimed at accelerating those microenterprises or SMEs.
Incubators are already, and no more are needed. What is needed are accelerators that make them grow and globalize their brands so that Puerto Rican capital can be as robust and important as the foreigner. Business is an individual attitude, but the context plays a fundamental role. The institutional order favors or hinders the entrepreneur’s own innovative trends. For this reason, it is necessary that there is a favorable macroeconomic environment and government policies that stimulate industrial activity. We need to reduce the cost of doing business in Puerto Rico and for this there are three factors: simplify the permissions process;reduce energy and transportation costs. Puerto Rico needs to diversify its exports. Priority needs to increase its services exports since in the world 19% is exported in this sector, while only 4% are exported in Puerto Rico. Services exports are those that can contribute to an increase in total employment on the island while the local economy to the international market would be more than this more.
Puerto Rico has a macroeconomic crisis, but we have a great opportunity. The small and medium enterprises sector could occupy the government space in the promotion of technology companies. Each Puerto Rican has to ask what it contributes as an individual to the country’s competitiveness. The behavior of each person, their vocabulary, their social and work performance, their professional and community ethics contribute to Puerto Rico is a better or worse place to live, to work and do business. The reality is that it is not an internal competition, it is about collaborating with each and every one of the sectors and the people who are part of the island of charm. That will be the best way to rescue the competitiveness of Puerto Rico in front of the world.
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