The economic turmoil experienced by the Venezuelan franchise business: A brief historical overview La tormenta económica atravesada por el negocio de franquicias en Venezuela, una breve referencia histórica (2002-2024)

Abstract

To provide a brief retrospective of the major economic events that have impacted the franchise business in Venezuela over the last 20 years. Methodology. A bibliographic review was conducted using an extensive array of public and private sources. Results. Venezuela, an oil-producing nation with significant development potential, is currently facing substantial political and social tensions. These factors have a direct impact on the economy (business climate) and the overall well-being of its population. Understanding the performance of a business model like franchising requires a thorough examination of the political context, particularly in relation to specific incentives and disincentives. Conclusions. The events that transpired in Venezuela, stemming from the State’s heightened interventionism in both the private and public domains of individuals, may serve as a model for worst practices (the opposite of Best Practices) in both the political and economic spheres. This is a valuable learning experience for a region characterized by numerous similarities in how governments manage and conduct economic affairs.