As Argentina’s economic crisis continues into 2019, many challenges remain for those doing business in the country. Skyrocketing interest rates have failed to quell the Argentine peso’s rapid inflation. The country’s economic situation is dire, and a shortage of credit lines leaves many potential entrepreneurs without a business. Many firms cannot afford loans and are stuck having to raise their own capital. Despite these challenges, some business owners are thriving more than ever before. So, how can you make a killing when your country is in the middle of an economic crisis and there are few resources available to you? Some business owners, such as Matias Moore, have taken a different approach.
Vacavaliente makes various home and office supplies out of leather. Despite the crisis and massive fluctuations in interest and exchange rates, Moore, the company’s owner, managed to double his production last year. What he did is simple: by focusing his efforts on creating an international client base, Moore managed to isolate his business from the risks that the crisis has brought to Argentina. Now, 75% of his business comes from international markets, reducing risk by not becoming dependent on local markets. By reaching out internationally, Argentinian businesses can also reach customers that are unaffected by Argentina’s inflation crisis, apart from being able to pay a lower cost in their own currencies.
While business continues to remain difficult in Argentina, hopefully more businesses can replicate Vacavaliente’s success.
