|
Impacts
on the Business Environment - Analysis
|

Improved infrastructures in public utilities and telecommunication will have a great impact on the way people do business in Haiti. In order to illustrate this, we will look at a proposed business plan for an existing business in Haiti. PROVALSA is a wholesaler of food products located in Port-au-Prince. Buyers come to the capital from every corner of the country in order to buy products like flour, rice, and sugar every week in order to resale them in small shops in their respective locations. Some of them come with trucks that are filled, and then take on the perilous roads to get back to their towns. Most of the transactions are paid with cash; and with the rising inflation more paper currency, making even the trip to PROVALSA a dangerous one. Others come by boat and receive their merchandise from trucks owned by PROVALSA which delivers to the port.
If a railroad network existed in the country, the need for trucks would be eliminated, making the roads safer and longer lasting. The capacity held by on train is equivalent to about eight trucks. A railroad network would dramatically improve the distribution of goods from Port-au-Prince to the provinces, lowering transportation cost for retailers. The next step that should be taken is an alliance with banks. PROVALSA's property is large enough to accommodate the opening of a bank's branch, making it possible for clients to deposit their funds. When transactions are made in the store, a considerable amount of time is wasted in counting and recounting money. Having an alliance to a bank would transfer this chore to the bank, and therefore allow PROVALSA to make more transactions.
The third step would consist of opening stores in the provinces where customers could place orders. This system resembles the infrastructure used by poittransfer.com, discussed earlier. The stores would be a combination of PROVALSA's services and a bank where customers could open accounts as well. These stores would communicate with PROVALSA in Port-au-Prince through a wireless network (the country being very mountainous, it is easier to implement wireless networks) in order to speed up the order processing. By having orders placed on their networks, PROVALSA would simplify its bookkeeping system by not having to manually enter all the daily entries. When orders are received, PROVALSA would ship the goods via trains, making it more convenient for customers who have, in the past, been incurring very high transportation and security costs.
The most interesting factor here is security. The rise of violent crimes has greatly injured business in Haiti, and the commerce industry is a high-risk market. By minimizing cash transactions, PROVALSA will create a safer environment for its customers and make itself more attractive to new clients. This plan would not only benefit the commerce industry but other sectors as well. A railroad system would allow a great number of provinces to open to national and international markets. By improving communications, physical, voice, and data, is crucial for Haiti's economy.