70% of all businesses have been forced to close in Trujillo state

Shop owners have now joined a national trend and become street peddlers, industry groups told to El Pitazo.

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About 70% of all established businesses in the Andean state of Trujillo had been forced to close its doors by the end of 2019 with owners now working as peddlers.

The local chamber of the national Fedecamaras industry and trade association, as well as the corresponding chapters for Consecomercio, Conindustria and Acoinva reported these figures during an encounter with young entrepreneurs.

They estimated that the trend could continue has Venezuela entered its seventh consecutive year of contracting GDP and the third straight year of hyperinflation in October 2019, measured at 9.550% for 2019 by the Central Bank.

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The process is known as “dollarization” could offer an incentive during this situation but not a solution, Felipe Capozzolio, president of the local Consecomercio chamber, said.

“The truth is, there’s still an 85% of the population that does not have access to this currency,” adding that it could be considered “a relief or a solution to a transactional problem.”

This environment coupled with new higher taxes announced by the Nicola Maduro regime will continue pushing businessmen into the roles of street peddlers, Capazzolio said

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