Employers point to the thick web of paperwork that must be traversed in Costa Rica if you want to start a new business.
From a press release issued by the Costa Rican Union of Chambers and Associations in the Private Business Sector (UCCAEP):
Most entrepreneurs, according to the latest data from the Survey "Business Pulse" by the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP) indicate that in Costa Rica there are a number of constraints to the initiation of a new business in the country.
The slow opening of the telecommunications market and the exchange rate are key factors in the decline in business confidence over the previous quarter.
• Perception and business confidence down for the second consecutive semester
• UCCAEP urges a national agenda to boost productive activities
Most businesses continue to show caution according to the most recent Trust Perception Index, measured by the most recent "Business Pulse" of the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP).
The long processes to start a company in Costa Rica do not seem so bad for Latin America, but they are unacceptable at the international level.
When a country wants to enter the global market as a means for progress and economic and social development, it should offer expedited pathways for investors and entrepreneurs to start a business or to facilitate introducing their products and services to the economy.
Gessa employees in Costa Rica will work one day less per month and they will see their salary reduced proportionately.
The management and employees of the administrative and logistics sector company agreed not to work the third Friday of each month in an effort to cut costs and avoid personnel layoffs.
The Ministry of Labor limited itself to verifying that 100% of employees were in agreement with the measure.
The Bank does not see a reduction in interest rates, especially in colones, while there is no decrease in inflation.
Marvin Barquero published in the Nacion website: "Given that banks have the resources to lend, the businessmen request to reduce the minimum legal deposit (percentage of public deposits that banks must keep as backup) was virtually ruled out.
The Government of Costa Rica is putting emphasis on social spending and investment in public works as measures to deal with the contraction of the economy.
Labor flexibility, expansion of unemployment benefits, adjustment of rates for credit at state banks, the reduction of work hours, increase in pension benefits, are some of the measures announced in the "Plan Escudo" (Shield Plan).
The Costa Rican Chamber of Industry warned that they have grave doubts with regard to the FTA with China saying it would be preferable to enter into a partial agreement.
Juan Maria Gonzalez, President of the Chamber indicated that China's interest in Costa Rica is not commercial, but rather geopolitical and that when these two plans mix results are not good.
The business sector is warning that the Costa Rica could enter a crisis of massive layoffs if they cannot finance their activities.
The warning is based on the scarcity of credit both from the public and private banks, which is causing many companies not to have sufficient financial resources to continue operations or expand.
Representatives of the Unión Costarricense de Cámaras y Asociaciones de la Empresa Privada (Uccaep) met with their associates to explain the urgent need for credit.
The business sector is warning that the Costa Rica could enter a crisis of massive layoffs if they cannot finance their activities.
The warning is based on the scarcity of credit both from the public and private banks, which is causing many companies not to have sufficient financial resources to continue operations or expand.
Representatives of the Unión Costarricense de Cámaras y Asociaciones de la Empresa Privada (Uccaep) met with their associates to explain the urgent need for credit.
Inflationary pressures, increases in the exchange rate, credit restrictions and higher energy prices are a few of the causes.
Although the majority of Costa Rican businessmen continue to be optimistic about the direction the country is heading, the quarterly poll "Pulso Empresarial" - or Business Pulse in English - showed a 10% drop in the confidence level in comparison to previous polls.