Panama’s business environment presents a favorable image to foreign and local investors alike. Panama City the principal commercial center followed by the Colon Free Trade Zone. Panamanian economy has experienced very dynamic growth in the past years, after suffering setbacks brought by the Noriega administration and the sluggish growth in 2000-2002. Industries behind this dynamic growth are transportation (including the Panama Canal, the container transshipment ports, railroads, air transport and domestic passengers and cargo transportation), the Colon Free Trade Zone, construction, wholesale and retail trade, restaurants and hotels, communications, financial intermediation and real estate activities.
Doing business in Panama is convenient because Panama uses the U.S. dollar as its legal tender, the balboa (the Panamanian currency) being interchangeable with it. Since there are no valuation/conversion concerns, it has practically eliminated current exchange risks for US dollar-based companies. There are also no restrictions on funds transfer in and out of the country, which makes it easy to invest and divest. Business hours are 8:00am-6:00 pm, with 1½ hours for lunch period, weekdays. Government office hours vary so check prior to visiting. All Offices and commercial businesses are closed on days of national mourning. In terms of labor force, Panama has a rich source of manpower. Literacy rate is 90 percent, many Panamanians being bilingual. Panama’s inflation rate is relatively low and almost always mirrors that of the US, though always below it. Doing business in Panama is virtually tax-free due to its territorial method of taxation (only income made within the country is subject to Panamanian tax) and no reporting requirements or taxes are imposed. Doing business in Panama is favored by foreign corporations because of its flexible company laws, which include no restrictions on 100 percent foreign-owned companies and no restrictions on mergers, acquisitions, or joint ventures. Doing business in Panama is straightforward because of the country’s equal treatment of foreign and local citizens alike.
Doing business in Panama is amply supported by its transportation and telecommunications infrastructure. Panama’s modern railroad is extensive and is used both for cargo and passengers transportation. Panama has a highway network of asphalted concrete roads, with 27 public and 41 private airports. Together with the Panama Canal, Panama is a multimodal transportation center. Telecommunications facilities include cellular phone networks, fixed phones and the Internet. Real estate is affordable and extensive. Doing business in Panama is almost worry-free because it has one of the best access to capital. Its banking industry is known as the “Switzerland of Latin America,” a fitting name because it rivals Switzerland in modernity and security. Panama is a peaceful country with no military and where personal security concerns are limited. It is a member of the World Trade Organization and it has free trade and limited trade agreements with countries in Asia, the Americas and in Europe.
With the favorable business environment, it is no wonder that Panama is one of the most favored investment destinations in Latin America. Panama welcomes all investors to come see the country and enjoy its natural riches, while doing great business.

Realistic appreciation of business environment, its market and business are of paramount importance for company management to form the right company strategy and derive the right decisions. Personal emotions however frequently interfere, blurring the view, and affecting managers’ ability to judge reality.

April 6, 2009, an earthquake, hits L’Aquila, Italy, killing over 260 residents, injuring over 1,000 and leaving 28,000 homeless.

Out of numerous personal tragedies, which the cameraman brought to our homes, two less severe stories shed light on our perceptions of Reality.

The camera shows a family, parents and two girls, lucky enough to leave home on the disastrous day in order to visit friends, standing shocked in front of their house. What used to be their home is now only a heap of stones. Their apartment is buried deep under the walls and columns piled one on top of the other.

Their entire wealth is buried. Precious belongings, photographs, things they are attached to, will never be restored. Their faces express the pain, despair and hopelessness of people seeing their world collapsing before their eyes.

The camera shows another scene on our TV. The background looks the same, another pile of stones quite similar to the first one, but here a rescue team is trying to save a child buried under the heap.

The cameraman focuses on the hands of the people trying to clear a path for the little girl. She is slowly pulled out, and eventually finds herself in the arms of a rescue team member.

Out of nowhere, the father of the girl appears on the screen. He embraces the little child carrying her to her mother who stands nearby. The father, holding his little daughter in his arms, seems to be the happiest man ever lived; the mother sheds tears of joy.

Eventually, both families find themselves in the same position. They have been thrown out of their homes, both saved their family members, and both have to start rebuilding their lives.

The first family is in despair, they seem not to know where and how to go on. The horror, which the second family did go through, however, until they could hug their daughter again, and the relief felt when the girl was rescued, made them lucky. They are not miserable any more. They seem to evaluate the lost property as a minor incident.

The future will probably look different for both families. Although, the situation seems similar, each one has a different prospective. Each one has his own truth, which is hundred eighty degrees apart.

The first family being a victim, the second is in luck.

The second family will probably be much sooner on track again. The wounds will heal very slowly for the parents of the first.

“All our yesterdays have lighted fools The way to dusty death”, says Macbeth in Shakespeare’s play. There is not much we can do when we are in sorrow. It takes time until we become accustomed to the situation, able to repress emotions and evaluate logically our next steps.

But many fall in the trap where emotional experience, does light the way. Many managerial decisions are based not on logical evaluation of present condition or long term future strategy, but on embedded emotions, prejudices, rules of thumb, loyalties, promises and old habits. Past experience does affect our decisions causing us to deny reality.

If you were a newcomer to your company:

Would you continue to distribute your products in the same territories, with the same reps?

Wouldn’t you eliminate the product lines that do not contribute?

Would you continue to push the new “promising” idea, in spite of negative market feedback?

Would you continue with the same managers in the same positions?

Would you continue with the same customers, all of them?

Would you continue to manage other operations the same way?

If you are the founder, or if you manage the company for years, the company probably reflects your character, beliefs, commitments and personal connections.

If you do accept the idea that major changes are required, consideration should be given whether you should lead the transformation. Help from a consultant or a manager able to devote the required time may be preferred. Even so, whoever is in charge should be given authority, or at least a sincere attentive ear.

Now that Africa is becoming one of the world’s best business venue, competition might get tougher. All types of businesses will need a more intense and effective business modeling to keep up with the heat of the battle. Doing business in Sub-Saharan Africa will become harder to bear because of the rise of more foreign investments.Competition in Africa’s business sector is expected to become tighter. This is all because of the growing number of investors being invited by the region’s overall growth. Countries with large economies were the premiere investors in Africa. One of them is China which focuses on oil, mining and infrastructure business. But as always the first one to come is the one who gets much of the advantage. This is why Chinese investors are making the most of the moment while everything is still fresh and hot. China is one of Africa’s best business partner right now. With their wide spread investments, the continent is helped out to cater the needs of Africans. United States is also one of the primary investor in Africa. These two countries are perceived as two banging stones in African business and in the global economy.But as experts said, no business in Africa will be cornered or get left sagging in their respective industries. Africa has a very competitive natural resources, enough to sustain the life of any African business. Plus, the large population of the continent is a great prospect to become consumers. The consuming behavior of most people are also improving. More people are introduced to innovations. Slowly but surely, Africans are embracing them to make their daily living better. A tighter competition can only be a disadvantage for businessmen if they don’t know how to abide it.On a brighter side, competition in Africa’s business environment will spur growth on the continent’s different sectors. It will stimulate progress through innovation and greater productivity. More production means more supply. Like in food business, if there are more ventures on food production, people will never run out of sources. Lesser rate will suffer from hunger. ICT is also one of the most improved sector. Majority of the population of the whole continent is seeking for something that will make their life more convenient. Anywhere you look at, you will find someone asking for a change. What Africa needs is more investments on their ICT, agriculture, education, health services, infrastructure, etc.. You can be the one that they are looking for.Competition just needs to be fair and everything else will end up positive. Competitors are not there to thwart you from achieving your goals. There’s nothing that can stop you from getting what you want if you badly want it. Problem can come in the form of poor management and ineffective decision making but can be resolved through business consulting.

Ukraine business environment with focus on Oil and Gas Industry

Ukraine business environment has transformed since Ukraine independence in 1991. Remnants of the old rent seeking economy can still be seen in certain areas of Ukraine business and law making. However, the latter years have introduced several changes into law and reforms within the authorities. However, its too early to state that Ukraine has arrived at the finish line for its business environment policy making.

I have written several books and articles about Ukraine business opportunities within Ukraine. I have focused my attention towards the oil and gas industry in general and made another focus towards the commercial regime governed by laws in the country. The commercial regime in Ukraine is also controlled by how the laws and regulations are implemented in the country as well as how sanctions are performed by violations of these. The judicial system in Ukraine is decentralized through the various oblasts within Ukraine, and there is therefore likely to find variations of how the laws are implemented there. The central court in Kiev makes ruling in most cases of national interest and several cases have been brought into justice here for decision. Laws regulating business activities have also been changed regularly and have therefore been in some degree not predictable to businesses in Ukraine.

As Ukraine developed into a market economy and gradually try to find its way out of rent economy regime, it has met obstacles on its way. Certain public offices have not yet found its place into the new market regime, and still work on old premises. However, Ukraine has transformed remarkable during the years since 1991 and its independence from Soviet Union.

The business environment in Ukraine is still regarded as high risk, but the risks vary a lot depending upon which segment of business you are involved into. Traditionally oil and gas together with steel industry has been the major profit seeking segments of Ukrainians in the hunt for wealth and business opportunities. It is also in these segments we will find remnants of the old rent economy still strong, as players within these segments are also politically involved at various degrees. This allows for the continuation of rent economy aspects to develop and sustain it, even if Ukraine becomes more market oriented. There are signals of changes within these sectors as well; however it will take time and efforts to pass the hurdles in the way in these sectors.

Let’s look at some aspects of business environment that affects at least the SME’s in Ukraine.

Permits and inspections continue to be identified as the most serious regulatory barriers to private sector development. IFC experts to conclude that permits and inspections remain one of the top-rated administrative problems impeding business activity, along with taxation procedures, government regulation of export activities, and mandatory certification and licensing of products and services. Taxation issues for SMEs are different from all other elements of fiscal policy in both the manner in which they define the tax basis and tax rates and in the fashion of their administration. They need a comprehensive assessment.

A pervasive problem undermining business development in Ukraine is the high number of businesses operating unofficially, without registration (at least 500,000, or 25% of the total number of active businesses). This suggests that (1) government regulation of business activity remains very rigorous, making compliance burdensome for businesses, and (2) the potential for the development of private entrepreneurship in Ukraine, nevertheless, remains high.

What needs to be done is; Amend the Law “On the System of Permits for Business Activity” by setting out a standard procedure for issuing permits and adopting the “single window” and “silence-is-consent” principles.

There is also a need to amend the Law “On the System of Permits for Business Activity” to clarify the definition of a permit and thus distinguish it from other types of documentation.

There is also a need to reform the system as it is today, and one of the main activities to reform is to establish a maximum frequency of inspections for all risk categories of businesses needed to classify in Ukraine. There needs to be established a maximum duration for inspections.

To ensure proper control and unified control of businesses there is a need to introduce uniform inspection routines by developing and approve standard procedures for conducting inspections and presenting inspection findings.

At the same time, experts are stating that they don’t expect the government to find the courage to institute those transformations that could significantly improve the business environment, especially through the times of recession.

We have pointed at some few elements to improve business environment and which could strengthen international investment into Ukraine businesses. However, there a numbers of factors that needs to be looked into as well.

With this said, it is important that domestic investor’s finds time to invest into Ukraine business and to positively participate in transforming Ukraine into a more robust market oriented economy supportive of business activities. The wait is over to just look and hope that traditionally centralized rent economy will save the future of Ukraine. It is time to act upon more market oriented mechanisms that will be robust enough to provide business opportunities that is sustainable for Ukraine, both on the domestic market, but as well in the international arena.

Ukraine relies too much on steel export, which also is using the majority of gas import costs of the country to produce its products. Therefore there is a need for a energy reform that translates into how the energy needing sector of Ukraine business will contribute more to energy reforms in the country.

There will also be a need in the short to medium term to substitute some of the gas import with domestic gas production, that will be more cost efficient for the country and will enable a energy reform which gradually will have residents and business pay more for the energy they use. The cost increase will not be as big as only relying on imported costly gas.

Another aspect is modernization and effectiveness of agribusiness sector in Ukraine. This sector is in high need of modernization in order to deliver higher quantities of products for both domestic as well as international needs. It is also needed in order to enhance the product quality within their produce. This has lately been seen as export to Egypt of wheat as prompted questions about the wheat quality compared to US products.

Oil and Gas related books;

http://www.lulu.com/content/paperback-book/geological-and-geophysical-studies-hydrocarbon-potential-in-ukraine/307459

http://www.lulu.com/content/paperback-book/geological-and-geophysical-studies-hydrocarbon-potential-in-ukraine/307459 

Law- Finance books;

http://www.lulu.com/content/paperback-book/legal-framework-affecting-foreign-investment-in-ukraine/2631725

http://www.lulu.com/content/paperback-book/basic-law-of-ukraine/2505873

http://www.lulu.com/content/paperback-book/ukraine-financial-law/2506917

http://www.lulu.com/content/paperback-book/ukrainian-civil-law/2506879

http://www.lulu.com/content/paperback-book/ukrainian-labour-law/2506674

http://www.lulu.com/content/paperback-book/ukrainian-trade-law/2506459 

http://www.lulu.com/content/paperback-book/the-theory-of-the-state-and-law/2506420

http://www.lulu.com/content/paperback-book/law-on-social-protection-in-ukraine/2506400

http://www.lulu.com/content/paperback-book/legislative-basic-law—in-ukrainian/2506350

http://www.lulu.com/content/paperback-book/international-public-law-in-ukrainian/2506329

http://www.lulu.com/content/paperback-book/international-law—part-2/2506079

http://www.lulu.com/content/paperback-book/international-law—part-2/2506079

http://www.lulu.com/content/paperback-book/law-on-intellectual-property-in-ukraine/2506035

http://www.lulu.com/content/paperback-book/law-on-intellectual-property-in-ukraine/2506035

http://www.lulu.com/content/paperback-book/economic-law-of-ukraine—part-1/2505981

http://www.lulu.com/content/paperback-book/criminal-law-of-ukraine—part-2/2505961

http://www.lulu.com/content/paperback-book/criminal-law-of-ukraine—part-1/2505940

http://www.lulu.com/content/paperback-book/criminal-law-of-ukraine—part-1/2505940

http://www.lulu.com/content/paperback-book/basic-law-of-ukraine/2505873

Outlook for business environment in Ukraine

I highlight a relatively dire outlook for Ukraine’s growth prospects in 2009. Although we prognoses’ a contraction in real GDP growth of in excess of 10%, i caution that risks remain weighted heavily to the downside. I think there are five scenarios which pose the biggest risk to stability in 2009, and caution that the emergence of one will have a significant knock-on effect throughout the wider economy, potentially dragging growth below -15%. Although we expect Ukraine’s economy to recover in 2010, with growth of 2 % currently projected, we caution that previous rates of robust economic expansion are not likely to be repeated in the foreseeable future. Indeed, the days of cheap, readily available credit, which helped fuel an average rate of real GDP growth of 7.4% between 2000 and 2007, are now likely to have passed. As such, i forecast real GDP to expand by an average of 4% between 2011 and 2013.

I believe 2009 will test the limits of Ukrainian governmental stability. Although i generally hold a relatively pessimistic outlook on policy formation in Ukraine, the combination of a severe economic downturn and upcoming presidential elections are set to exacerbate pre-existing tensions in parliament. As leading politicians begin campaigning for the January 2010 vote, i caution that the government’s ability to effectively tackle the effects of the ongoing economic crisis will remain impaired through the medium term, which will increase the risks of the impending recession being more severe than currently expected. Moreover, as public discontent increasingly turns against the government, we also expect to see further ruptures within the recently restored ‘Orange’ alliance, thereby elevating the risks to the ruling coalition’s medium-term stability.

Although the hryvnia stabilized in January, i maintain a core view that fundamental pressures on the currency will remain firmly to the downside. Given the combination of an expected slowdown in capital inflows, a bleak macroeconomic outlook, and ongoing political instability, i see little reason to like the currency through the medium term, and project further depreciation towards UAH 11/USD by end-2009. While this would typically benefit current account dynamics by increasing the price competitiveness of Ukrainian exports, i caution that the ongoing demand destruction taking place throughout emerging Europe will likely mitigate the immediate impact of a weaker currency.

An agreement reached on January 18 between Ukrainian Prime Minister Yulia Tymoshenko and her Russian counterpart Vladimir Putin brought the latest Russia-Ukraine gas crisis to a conclusion. According to the terms of the deal, Ukraine will pay European gas prices, less 20%, in 2009, with a full transition to European market prices in 2010, while Russia will pay the same transit fee for shipping gas to European markets in 2009, with a transition to full market prices the year after. In addition, it was agreed that intermediary gas trader RosUkrEnergo (RUE) is to be phased out of the Russian-Ukrainian gas trade. Although I do not believe the temporary disruption in gas supplies in January will have a pronounced impact on full-year real GDP growth, i nevertheless caution that industrial production figures for January when many firms were forced to suspend or cutback production, will likely be subdued. Lately there have been put question marks to how robust this deal is for stabilization of gas transport through Ukraine, and how it will affect the Ukrainian economy. It remains to be seen how well the Russians and Ukrainians will collaborate on this issue.

Please feel free to contact me on: sak@ec-ba.com if you want more details or want to discuss issues around doing business in Ukraine.

The achievement of business success requires many skills. Amongst these are the skill sets to assess the business environment and to capitalize on, and risk manage, that environment.The business environment includes the marketplace, yourself and your business partners, and any external factor that may positively or negatively affect the level of your business success. Today we are going to look at three aspects of the environment; transformation, opportunities and obstacles, and two groups of environment handling strategies; consolidation strategies, and exit strategies.1. The Amount Of Transformation Required To Reach Your GoalAchieving any goal requires change. It is important when setting business goals to determine the amount of change required. If the change is great it may be better to break the goal down to sub-goals in order to make success more accessible.Start with the question; why hasn’t the business already attained that goal? This will help determine exactly what needs to be changed as well as the amount of change needed.It is important to determine how those changes can be accomplished in the current environment by looking at the opportunities and threats in the environment and the strengths and weakness within the business.2. Opportunities, Strengths And AdvantagesEvery environment provides opportunities to those who develop the skill of seeing them. Every business has its own strengths and its own advantages over other businesses. The wise business manager can determine the best combination of these opportunities, strengths and advantages and then implement strategies to maximize profit at this point in the environment.Even in the toughest times, when most businesses are in trouble, there are always some businesses that are prospering. If you develop the skills for assessing opportunities, strengths and advantages and the habit of acting on that assessment by taking appropriate goal directed action, then your business will always be one of those that are prospering.3. Obstacles, Threats And LimitationsThe environment always contains opportunities and it also always contains obstacles. Your business always has some limitations at any particular point in time and there are always threats to your success and profitability.Since we know that these “problems” will always exist the wise business manager develops the skill of recognizing them early and develops and implements risk management strategies to guide the business through the difficulties while at the same time the business is focusing its efforts on profiting from the opportunities. 4. Consolidation StrategiesA business requires change in order to grow but constant change can be destabilizing. The wise business manager determines when it is appropriate to consolidate the gains made so that those gains become a strong foundation on which to build the next campaign of positive change.A thorough understanding of the business environment can help determine the best point at which to consolidate and the best strategy to implement that consolidation.5. Exit StrategiesNo matter how skilled the manager is, or how well the environment is analyzed for opportunities, and threats, or how good the consolidation strategy may be, there is always the possiblity that things don’t go to plan.For this reason there is a golden rule that needs to be followed in every campaign; never enter any business campaign without a predetermined exit strategy.The best time to determine strategies for how to exit a campaign with the minimum of difficulty or loss is before the campaign starts. This is when you are calm and clear thinking. If you wait until things are going wrong and the pressure is at a peak you are far less likely to find the best solution.That was a brief introduction to capitalizing on the business environment. Now it’s up to you to put aside some time to use these five points to help you look at the current environment for your business and determine how you can capitalize on that environment to increase your business success.

Running a profitable business from home is the dream of many who flock to the internet. A home business can be a great situation if approached with a realistic attitude.
Leave the get rich quick thoughts out of your internet business plan
While there are a few cases where people have built an internet business and had almost immediate success, there are also a few people who win the lottery. The odds are about the same.
Be realistic when you plan your home business. Building a business on the internet is a great opportunity because there are great programs to help you automate and run a business, and because it can be started for a minimal investment. But it does take time and dedication. If you are not willing to invest some time and a lot of dedication, you are in the wrong place.
Research and planning are the first step
Before you jump into any market online, you need to do the research. Find out if there is enough of a market for what you plan to sell, and how or where you will get the products.
Products can be tangible or physical products, or they can be information or software that is delivered electronically. If you can’t create the product yourself, you must have a supplier. If your product is not self created, you need to check and see if there is a steady consistent supplier, and what the margin of profit will be.
You will need a home office environment
Your home office for your business can be as simple as a table in the corner of a room, or if you have the space, it can be a room designated as your home office.
Once you have established your work area, keep it for your work area only. Don’t mix personal affairs and efforts into your workspace. Your home office environment, whether it is a simple designated space, or a seperate room needs to be for your home business only.
Keep your workspace, files and equipment organized and in good working order. This may be a job if your household is small and shared with family, but it is necessary to maintain a business environment in order to be productive.
Distractions in a home business environment
Working from home can be a challenge and full of distractions. You may find it necessary to set some guidelines.
If you have a family and small children, you may need to enlist their co-operation in order to get any work accomplished. During your designated work time you may need to make some rules so that you can concentrate on the work at hand and not be constantly distracted. If necessary you may want to consider resorting to a little bribery.
The phone and drop-in guests could also raise some challenges. You may want to let your friends know what your schedule is, and when you will be available to receive guests and phone calls. The phone can be a real distraction and time consuming. If you are fortunate, you can possibly get someone else in the household to take calls and messages and filter out all but those which need immediate attention.
Develop a work environment that is workable
Run your home business like a business right from the beginning. It will take a little time to work out the special needs for a home based business environment and make it a workable and efficient situation, but it will be necessary if you are going to succeed and maintain a profitable home business.