How Bureaucracy Kills Entrepreneurship

Officials do not understand or want to understand innovation, because their privileges are always anchored in the past and never in the future.

Friday, October 25, 2013

In Costa Rica it is impossible to register a vehicle manufactured in the country, because there is no Customs Declaration, which is required by law.

An article in Elfinancierocr.com describes the vicissitudes of a Costa Rican entrepreneur who has who developed an electric vehicle and is now looking for funding to produce it.

"Jesse Blenn is an entrepreneur, mechanic and pilot, foreigner by birth but tico by heart. For several years he has been attempting to start up a company which to many people sounded like a joke in a country such as Costa Rica. "

But his current drama is that if he manages to raise the money "to make his car, he could not put it into circulation.Why?Because in order to be able to drive on the streets every vehicle needs a registration certificate (road tax paid, technical review carried out, etc.) and to obtain this permission it first needs to be registered in the National Registry. "

Here is the first obstacle. The Registry asks for the Single Customs Declaration form (DUA), a document that indicates the value of the vehicle and which is created in a customs office. However, if Blenn manufactures the vehicle, it will never go through customs as it is not arriving from abroad, but would be made ​​in the country.



More on this topic

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The Guatemalan government has launched a Business Innovation Program but the website where companies sign up to it is not functioning.

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If you want to pontificate on how to do business, the first thing you should do is to demonstrate efficacy. We will keep insisting that public officials should not try to teach entrepreneurs how to do things, but instead devote themselves to removing bureaucratic obstacles and infrastructure, and in particular to doing their own jobs effectively and efficiently. Until this happens, the hundreds of "business support" programs that appear every year in Central America, will only end up being good intentions and nothing else.

Excellence in Central America? YES WE CAN

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Using first world technology and management the Panamanian company Veggie Fresh Invest will be sending two containers a week of hydroponically produced peppers to the U.S..

"I would say we did things as they should be done, which is a little opposite to how traditional farmers do things: first plant and then look for the customer," said the entrepreneur Guillermo Villarreal, owner of the company.

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Very important reading. Five tips from Richard Branson, the successful founder of Virgin Airlines, about how to succeed in the business world.

Born in 1950, Branson, started his first company ( a magazine named "Student") when he was 16 years old. At his 20's he started a mail delivery company activated by audio and when he was 20 he created Virgin Records, a music store chain.

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