Business Friendly Panama? |
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| Written by Matt |
| Thursday, 27 August 2009 13:49 |
 Doing business in Panama. On paper, it's one of the nation's most celebrated allures: the ability, as a foreigner, to relocate, open up shop, and flourish in an emerging market. But there are of course downfalls to every pitch. There are differences between big and small business, well-connected entrepreneurs and newcomers, rich business owners and poor ones. What some like Dimitrios Svoliadopoulosm of Tropiland Blog are starting to reveal, is that the country's infrastructure for working, living, and conducting business may not be exactly what many were once led to believe.
Recently I have been commenting on various blogs regarding Panama's business start-up culture and the ability (or lack thereof) that this country has to attract foreign entrepreneurs and their business ideas.During these posting sessions it became obvious to me that there is a collective sentiment among foreigners that Panama's present business status quo is unwelcoming, inconsistent, unrewarding and cumbersome when it comes to new small, entrepreneurial ventures by foreigners. Yet, over the internet and other media, Panama is touted as one of the best places in Latin America to do business. I think there is a misconception here. It is one thing to have long established laws that favor incorporating and another thing to actually provide a sound and productive system for these corporations to do business in. So the multi-billion-dollar question still remains: What does Panama need to do in order to become a first-rate business and entrepreneurial environment? Undoubtedly, there are some cultural, as well as, systematic paradigm shifts that must be in place: 1) Welcome foreign talent and ideas: Panama needs to create immigration laws and policies that welcome foreign talent and business ideas. The existing immigration policy that "pseudo-protects" local talent has proven inadequate. It creates monopolies of the "local" few and prevents a large number of foreign talent from implementing their proven strategies. 2) Provide Consistent Application Of The Law: How many times in the past foreigners have "the book thrown at them" for minor infractions while local businesses "get away with murder"? 3) Create Customer Oriented Culture: This will require shifting the entire business culture to a new level, one employee at a time. Panamanians (who are and always will be the centerpiece of every business) must understand that a growing business is a happy customer business. After all, profit is the applause you get for taking care of your customers. If you don't take care of your customer, someone else will. 4) Provide Incentives For Innovative Ideas: In our trying financial times only the businesses that offer something different and innovative will survive. Reward these businesses with tax incentives, roadblock lifts or other rewarding means. 5) Give Small Businesses the Means to Educate Their Employees: Offer workforce educational programs based on models that are proven and work. 6) Give Small Businesses the Means to Reward Their Employees: When a business keeps their employees happy, they will keep the customers happy. 7) Eliminate Bureaucracy: Governmental business regulatory agencies are "top heavy". This makes it difficult to a) enforce the law correctly b) prone to corruption and c) take care of unproductive issues a a timely fashion creating backlogs, frustration and dead ends. How many times a simple application of sorts has to go through multiple "departmental chiefs" for approval (or disapproval)? These basic business practices are tried, tested and true and will work for Panama too. Author, Dimitrios Svoliadopoulosm, publishes his own blog at http://tropiland.blogspot.com
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Comments (4)
  written by Marcel , August 28, 2009 As far as I can see, this government is doing OK things in the right direction. But not unlike Obama taking over from Bush, they have way too many problems to tackle and are in far too deep over their heads. I have a business in Panama (real estate related) and can say 100% that if you are not in bed with another Panamanian, you will have the most difficult time doing anything. Whether this is protectionist or not, it's purely frustrating and 'UNFRIENDLY' in reference to your title. There's a company that does a ranking of "Ease of Doing Business." I remember seeing that Panama stayed strong in a top position from 2008-2009. However, in company with fools, that's not saying too much.
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 written by Sharifa , September 11, 2009 I am Panamanian and lived in the United Stated for over 16 years. I am also an attorney and an owner of a firm. There may be some relevant points in this article. However, what country should not protect its locals? I think it would be a sin if as a government you don't pretect your own. However, on another note, coming froma family of entrepeneurs and being an entrepeneur myself, Panama has offered foreign investors as well as entrpenuers a lot od benefits from Tax braks to the ability to open shop and be successful. YOU CAN NOT HAVE YOR CAKE AND EAT IT TOO. This article seems to focus on the author's failures and not on the benefits at all. Maybe he can not be successful in anything and anywhere. Panama should not be your excuse!! My father is not Panamanian. He has been in business in Panama for over 30 years.
In my experience living in Panama, Panama is very friendly to foreigners and international investors. My father has always said, Panamanian employees treat you like a King or Queen if your are an amployer. Cheap labor helps new and small business get off the ground and pick up the pieces fast. The government does not eat you alive with taxes like they do in the U.S. if you are a small business owner.. I can not wait to go back home and start a business of may own. report abuse
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 written by carold , October 04, 2009 As a business owner in Panama, I find that the most frustrating aspect of hiring local Panamanians is the lack of "critical thinking". There is an inability of most of the locals to analyze a problem out side the box. When presented with a problem; 2 + 2 = ?, will generate an hour conversation, but most likely an answer of 4. However, if the problem reads; 2 + x = 4, the answer to x is totally mind boggling. I know this is a simplistic example; but I hope you get my point. Creative and critical analysis, even from university educated people, is rare. I have hired several lawyers to help with a complex real estate problem, and not one has really analyzed the problem as completely as most US trained lawyers would.
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 written by AL , International Investor , November 22, 2009 Panama is not doing so well on the Doing Business Scale. It is ranked 77 on 183 country... as example, ... United States is 4, Canada is 8, Afganistan for you know what is 160, Venezuela for you know who is 177... Congo if you ever come back from your business trip there...is 182 so Panama can be compared to most carabbean island economies but it should be higher than that and not be at Bananas Republic Level. One of the problem, which drags Panama down the list is is labour force and regulation... Please Mr. new President Martinelli, take action and fix it...
Please refer to this good internet site which mesures Doing Business from Opening a business, Employment difficulties all the way to closing a business. Very interesting tool.... http://www.doingbusiness.org/exploreeconomies/?economyid=149 report abuse
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| Last Updated on Thursday, 27 August 2009 13:51 |
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