Fedecamaras Bolívar (Federation of Chambers of Commerce, Bolívar State) and its Economic Analysis Unit (UAE) presented the results of its Business Perception Survey. Among the data collected, they highlighted the reduction in profits and sales between the first quarter and second quarter of 2022.
By La Patilla – Pableysa Ostos
Oct 13, 2022
Through a press release, the coordinator of the UAE, Marco Tulio Méndez, stated that 92% of those surveyed suffered increases in inventory costs, of which 39% suffered increases of between 25% and 50%.
About 88% of those surveyed said they had suffered from increases in operating costs, which ends up having an impact on the final consumer. “The most shocking thing about all this is that when the product reaches the consumer, this translates into inflation,” said the expert.
What is the Business Perception Survey about? It is a questionnaire applied to representatives of the private sector of Bolívar that seeks to determine the region’s economic outlook.
For this second edition, we analyzed how economic activity has changed in the second quarter, compared to January, February and March of this year.
Results
In the survey it was determined that few achieved positive numbers in the second quarter of the year, 48% of entrepreneurs said they have suffered a reduction in their sales, compared to 29% who said that sales have increased.
Only 13% of those consulted had a profit in the second quarter compared to the first quarter, while 63% suffered a drop in profits.
“The survival of a business depends on the generation of profits (…) that half of those surveyed say that their profits have decreased because, despite the slight economic growth, they are not doing well. There are sectors that advance more slowly than others,” declared Méndez.
Almost half of the entrepreneurs consulted stated that installed capacity in their plants were idle stood at 25% or more. Méndez considered that one of the reasons is the low demand for products and services.
44% of businessmen reported a drop in demand and only 23% an increase in purchases.
“Demand has not yet taken off despite the slight recovery we have in the country (…) Bolívar is slowing down,” added the businessmen through the press release.
For their part, 60% of those surveyed stated that they had rotated personnel at a low or high level, although maintaining or adding the number of employees to the payroll. Méndez explained that job changes, migration and lack of transportation continue to be determining factors in staff turnover.
Difficulties and Opportunities
The study also reflected other figures, which are set out below:
The increases in costs continue to generate few expectations for the business community. 62.7% of those surveyed said that prices will increase by more than 10% in the following quarter and 29% considered that they will increase by 5%.
Access to credit remains a pending issue. The entrepreneurs stated that the limited access to loans and the high investment that is needed are the greatest difficulties to enter the economic sector.
In addition, they portrayed that power cuts, internet failures and the accumulation of garbage are the biggest problems that afflict the municipality, even surpassing the gasoline shortage that during the first quarter was at the top of the list of problems mentioned in previous surveys.
Likewise, 70% of those who participated in the study considered that the bolivar will continue to depreciate compared to the dollar. While 39% believe that the Special Economic Zones will reactivate the Venezuelan economy.
Home deliveries continue to be an alternative with much to exploit in Bolívar State. 51% reported that they do not use this medium to sell to their customers, while only 20% of those surveyed sell 5% of their products by delivery.
On the other hand, Instagram and WhatsApp continue to be the platforms where most of these home delivery transactions take place.
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