The Weight of Survival: Extortion and Debt Trapping Venezuelan Entrepreneurs
Returning home isn’t always a homecoming. For many Venezuelans, the dream of rebuilding a life in their homeland is quickly overshadowed by the harsh realities of economic hardship and systemic corruption. This is the story of Yosbelin Pérez, a resilient entrepreneur in Maracaibo, and the crushing weight she faces simply trying to provide for her family.Pérez,a skilled craftswoman who once thrived making aluminum cookware,was forced to migrate last year. Now, she’s back, relying on the generosity of her former partner who allows her to use his kitchen and equipment.This allows her family to earn a living, but the path to stability is riddled with obstacles.
A Cycle of debt
Currently, Pérez’s earnings are largely consumed by a predatory loan. She’s burdened with a staggering 40% monthly interest fee on a $1,000 debt. This leaves little room for reinvestment or even basic family needs. It’s a common trap for small business owners in Venezuela, where access to legitimate financial resources is severely limited.
Consider these points about the impact of such debt:
Limited Growth: High interest rates stifle any potential for expansion or advancement.
Perpetual Struggle: The debt becomes a constant drain, preventing long-term financial security.
Vulnerability: Desperate circumstances can lead to further exploitation.
The Return of Extortion
Sadly, the financial strain is compounded by a familiar threat: extortion. Pérez initially fled maracaibo to escape this very problem, but it has followed her home.
In June 2024, she spent hours in police custody after refusing to pay an officer $1,000. The demand wasn’t for a crime, but for the “privilege” of continuing to operate her small, backyard business. This illustrates a deeply ingrained culture of corruption where law enforcement actively preys on vulnerable citizens.
Upon her return, the harassment didn’t stop. Officers quickly resumed their demands for money. Pérez recounts a recent encounter in early July where guardsmen pressured her for financial “support.”
“I work to make a living from one day to the next,” she explained.”So, if I don’t give them any (money), others show up, too. I transferred him $5. It has to be more than $5 because otherwise, they’ll fight you.”
A Systemic Crisis
Pérez’s story isn’t unique. It’s a symptom of a larger systemic crisis in Venezuela.The combination of economic collapse, rampant corruption, and a lack of rule of law creates a unfriendly environment for entrepreneurs.
Here’s what you need to understand:
Lack of Protection: Small businesses have little recourse against extortion or unfair practices.
Erosion of Trust: The constant threat of corruption undermines faith in institutions.
Brain drain: The difficult conditions contribute to the ongoing exodus of skilled workers.
What Does This mean for You?
While you may not be directly affected by the situation in venezuela, understanding these challenges is crucial. It highlights the importance of:
Supporting Ethical businesses: Seek out companies committed to fair labor practices and responsible sourcing.
Advocating for Good governance: Encourage policies that promote transparency and accountability.
* Recognizing Human Resilience: Appreciate the courage and determination of individuals like Yosbelin Pérez who are fighting for a better future despite overwhelming odds.
Pérez’s struggle is a stark reminder that rebuilding a nation requires more than just economic recovery. It demands a essential shift in culture, a commitment to justice, and a genuine effort to protect the rights and dignity of all citizens. Until then, the weight of survival will continue to crush the dreams of countless Venezuelan entrepreneurs.
