Is A Rising Tide of Economic Optimism About To Lift Guatemalans?
By: Ron Podmore
Tags: Business Development, International Development, Infrastructure, Guatemala City, Tourism Marketing

(Editor’s Note: This draft chapter is part of a series that explores the feasibility of American and Multinational corporations considering relocating manufacturing et. al., from the Far East to Central America’s largest country; Guatemala. This segment continues with the concept of sole-proprietorship and the journey of one man as he seeks out a better way of life while remaining in Guatemala. All rights reserved).

(Chapter tbd) Jorge Estefan (name changed to protect his privacy) is a young man living in zona 12, two miles northwest of the main airport in Guatemala City. He left the town of Chimaltenango (midway between the capital and uber-touristy Lake Atitlan) five years ago to search out financial opportunities that were non-existent at the time. The only son within the family of three sisters, Jorge left the relative confines of home security with minimal advanced education. With no skills, minimal job experience, he knew he could use his smartphone to search out both a place to live with his meager savings and commence cold-calling various places that were offering potential employment.

“There aren’t much opportunities for jobs where I live in Chimaltenango. And I don’t want to risk my life with a mule to America. I’m the only son in the family” said Jorge, a soon-to-be new resident in Guatemala City.

When he decided to leave this city in the highlands of Guatemala, there were options to cross the Mexican border and perhaps gain entry into the USA, including the use of a mule (term for a human trafficker/smuggler). The going rate was somewhere in the vicinity of ten to twelve thousand dollars and with border restrictions strengthened to stop migration, (two border crossings) the odds of a safe, successful passage were diminishing with each passing month. For others like Jorge, it is a necessary risk that families continue each day and as a result, there is a huge epidemic of debt that plagues many of these migrants. Jorge did not want to become yet another statistic with insurmountable debt that would become beholden against his family.

“An education is a good step out of poverty. A better step is learning English. On the right path is working the call-centers,” he said.

He wasn’t too far off the mark. With a two hour, chicken-bus ride from his village, he embarked on a journey to the largest city in the country. He opted to try and find work and not attempt at migrating outside of the country to find work.

In recent years, the rise of human trafficking and increasingly stricter doctrines of American federal authorities have made life miserable for those who do make the attempt and fail; detentions of unknown duration, separation of families, and a deliberate attempt to physically transport captured migrants back to their country of origin. Migrants typically pay smugglers in two parts; the first, is somewhere around half of the overall sum, borrowing money from family, friends, etc., and this down payment is considered to be a good faith promise with more than one attempt to cross the borders (either with Guatemala into Mexico and/or Mexico and/or U.S.A.).

The rest would be paid off once the migrant theoretically gains entry into the United States. However, mule/smuggler fees continue to rise as the dangers increase. “A number of factors, from frequent payouts to criminal groups along the route; to the simple dictates of supply and demand, along with time of year,” and there aren’t any guarantees. Mr. Estefan choose wisely to remain.

Once he settled in Guatemala City, Mr. Estefan could then begin to find a room for rent in zona 12, as it was a demonstrably strong bastion of working, middle-class families within the city. Secure in his own right yet, weak in confidence, he searched the main commerce avenue of La Sexta or Sixth Avenue initially. Just a mere block away from the seat of the Federal government and Presidential palace, La Sexta was for many years, THE shopping district for middle class Guatemalans.

Designed and rebuilt after several earthquakes in the 1920s, Paseo La Sexta created a corridor that welcomed not only daily shoppers, but also those with another new artifact, the arrival of the automobile. This corridor has waxed and waned over the decades with various remodeling projects that still seems to stick to the historical roots, with an emphasis on brands that are either cheap knock-offs of fake stereo’s, smartphones, clothing accessories with brand names and with each passing store, the boom of noise inducing music and announcements of special store offers. In essence, the brash, loudness of blaring mariachi, American style 80s music and techno-boom is inviting for the masses; after all, more than sixty percent of the population is 40 and under. Guatemala is the land of eternal spring and it shows with the vibrancy of the population.

Here, one can still find the local, artisan crafts, textiles, tailor-made clothing, locally made shoes with an intricate craftmanship that is next to nonexistent stateside. Underneath the courtyard of the Catedral Metropolitana del Apostol Santiago or more aptly named, Main Cathedral of Guatemala City, lies Mercado Central, a very lively experience well established under the courtyard of the Cathedral.

A visit isn’t complete without venturing into the stalls and old-world marketplace complete with a variety of restaurants, freshly made tortillas and shrimp transported daily from the Pacific Ocean to make ceviche. The food is almost all organic, complete with flavors, seasonings that are idiosyncratic to the different regions. Most foreigners who savor the food will need to be aware that foodborne pathogens are still common; and it is not due to shoddy culinary practices but rather a lack of foods being grown and harvested without antibiotics. Bearing caution, what is foodborne pathogens to the unsuspecting tourist, may in fact, simply not exist to the locals; their diet and bio-environmental adaptation has prepared them with heightened shield against potential aggrieved parasites.

Tourists from parts of the world where everything grown, harvested and bathed in antibiotics may be in for an intestinal surprise. Yet, Mercado Central has one of the best places to find authentic, original Guatemalan artifacts, readily available after some price-haggling. One can’t help but notice two strands of thoughts; stall after stall after stall, complete with approachable, happy faces there are key-chains, potteries, textiles, paintings and various souvenirs, each token item is genuine; nothing cheap or ‘plastic.’ They represent the quality, craftmanship and dedication put forth from the artisan who made it. The second point of observation; there is very little variability. Almost every item and souvenir being sold is the same as those found in Antigua.

Mr. Estefan did score slightly better with short term employment outside of the bustling La Sexta Corridor. After a series of dead-ends and no response to job inquiries, he found employment in the new, burgeoning sprawl of the swanky, Rodeo Drive-esq complex called Paseo Cayala in Zona 16. On a hillside above the city, Paseo Cayala is located adjacent a golf course; the Paseo development avenues attempt to recreate the calmness of Antigua, complete with cobblestone streets, baroque ironworks and wide pedestrian walking paths.

Initial construction began around 2011 and this “planned city within a city” continues to evolve, responding to the needs of not just the upper echelons of Guatemalans with high disposable incomes, but those of other countries who purchase a residence and decide to relocate to Paseo Cayala. Ciudad Cayala, as it is more aptly named, continues to refine its development corridor, marketing to those who desire residential living standards that eclipse that of the average citizen.

Increasingly, as private funding continues to grow, more and more condominiums are being built elsewhere in the city, with a plethora in the once gritty, seedy zona quatro, not far from the La Sexta Avenida corridor. In addition, West of the main airport in zone 11, there are multiples of single family, one-story residences, complete with courtyards being torn down to make way for mid-rises, averaging between 10–16 stories in height. With the advent of social media, marketers are no longer being held to traditionally stringent advertising; developers wishing to sell these units are advertising on various social media sites. Mr. Estefan chose to go this route with advertising his new business on social media.

He originally opted to work a few weeks in the Paseo Cayala zone but realized that if he could demonstrate his new found skills with budding investors, he could probably establish his own business in the city as a sole proprietor. Using the same social media sites as developers for condominiums, he struggled periodically with small bursts of success with singular clients. When the pandemic hit, Mr. Estefan shuttered the doors to his business. However, amongst the fortunate few, he had enough savings to get through the darkest months. Mr. Estefan returned to work less than four months later, practicing socially distancing skills while plying his trade.

Today, he continues to expand both his client base and eagerly awaits the time when he can expand his employee base. Ideally, he seeks to open a physical site to continuously market and grow his business via social media. Mr. Estefan muses if a car is necessary for deliveries as well as hire additional part-time employees to deliver supplies and wares. He is proud of how far he has come since he left Chimaltenango over five years ago and once again, demonstrates the strong concept of a successful sole proprietorship that is prevalent in Guatemala.