Costa Rica and Guatemala are leading a market in which 300 brands based on this business model already operate, 125 of which are native to the region.
Of the 300 franchises existing in the region, 125 were created by Central American companies that have adopted this business model, becoming the fourth largest market for international franchise in Latin America.
Social conflict, the political environment and a feeling of insecurity have lead to fewer companies registering while a growing number of established companies disappear.
An article in Prensalibre.com reports that "During the first 20 months of the current administration 8,134 companies have ceased operations, which means that 406 closed per month, and 13 closed per day, according to Companies Registry," while "in the same period, but under the government of Alvaro Colom, the number of companies cancelling registrations was 5,236, about nine a day."
In the 2013 edition of the fair, participants closed $14 million in deals, plus $42.6 million in future purchasing intentions.
From a statement by ProNicaragua:
More than $14 million in business deals were signed during LAC Flavors 2013, the highest amount among the five editions of the annual business meeting, an increase of 363% compared to the $4 million conducted in the previous edition. It also registered $42.6 million in future purchase intentions, representing an increase of 241% versus the $12.5 million achieved in 2012.
In Nicaragua, Honduras and El Salvador large scale traders and exporters are leveraging the ability of small farmers assuring them market space.
For example, in Nicaragua, 228 dairy producers who are members of the Cooperative 'Cooperativa de Productores de Leche El Triunfo RL ' (Cooproleche) are no longer exposed to having to sell their product at any price . They belong to the supply chain company Centrolac which guarantees these small and medium dairy farmers to be paid a better price.
The survey by the Superintendence of Banks reflects greater optimism by 50% of the business sector for this year.
Out of the 25 largest companies and trade associations, 69% project an increase in sales, while only 21% expect to hire additional labor.
Of the survey, Javier Zepeda, executive director of the Chamber of Industry of Guatemala (CIG), "... believes that the results of the survey do not reflect the reality of the country and added that the sample is very small," reports the article in Elperiodico.com.gt.
Generates business opportunities by linking supply and demand of goods and services between Central America and the rest of the world.
Operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama
Phone: (506) 225 4786
We service our customers by helping them in all aspects of the process of establishing businesses in CA also we provide them with business opportunities in the Financial, Comercial and Real estate sectors.
Operates in Costa Rica
Phone: (506) 2272 9650 - (506) 8845 5439