I’ve noticed an interesting phenomenon as I’ve worked in Chile more deeply over the past two years building companies. Many, if not most, Chileans believe they don’t have much influence on events in their lives and in their country.
I see it all the time in multiple contexts: business, politics, customer service and corporate bureaucracy. I’m very familiar with this feeling in politics, as I feel the same way about non-local US politics, but at first I didn’t understand it in the other contexts.
For example, in business, if Chileans get screwed over, they are less likely to take to social media or write a blog post detailing their experience than people in the US are. When there was an issue with a Chilean business incubator, it festered for months before a foreign entrepreneur shared his experience and only then did nearly a dozen Chileans corroborate their experiences. I asked some of the Chilean entrepreneurs why they hand’t said anything before, and they all said that they didn’t think they could do anything to fix the situation and that they didn’t want to rock the boat. (more…)
After relaxing in Porto de Galinhas, I left my group to travel 5400 miles in three days to see USA/Portugal, Chile/Netherlands and Italy/Uruguay in Manaus, Sao Paulo and Natal, respectively. I left Porto de Galinhas with flip flops, shorts, a USA jersey, a sweatshirt, USA sunglasses and my tickets to the games, nothing more. My plan was to wake up at 4am, get to the Recife airport by 5 at the latest, then fly to Brasilia, then onto Manaus. But I almost didn’t make it.
We’d arrived in Porto de Galinhas two days earlier, but hadn’t filled up with gas. We’d planned to fill up upon arrival, but beach and caipirinhas got in the way. Instead, we decided to fill up at 430am on the way to the airport. But nobody told us that gas stations aren’t open 24/7 in northern Brazil. The first station, a half mile from our house, was closed. We asked the people partying (yes, partying at 430am in a gas station parking lot) where the next closest one was. They said there was one down the road. Closed too. The next one was closed, with all the lights turned off.
Enrique was accompanying me to the airport so he could use the car while I was gone, so the two of us continued until we got to a toll booth, already riding below empty on the gas gauge. I asked the toll booth operator if she could sell us a few liters of gas, but she said it wasn’t possible. I even offered to pay 3x the normal rate, but alas, no dice. I asked if there was roadside assistance and got an affirmative, so I asked if they could call now and have them bring me gas, but they said that they couldn’t call until we were fully out of gas. We decided to press on, against the warnings of the toll operators. They said that if (when) we ran out of gas that we had to stay on the highway and not get out of the car, as we had to pass favelas and other dangerous areas. As we pulled away they asked “first time in brazil?” and just smiled and shook their heads. Silly foreigners, expecting the gas stations to be open 24/7!
About a kilometer later, Enrique had the idea to go back to the tollbooth and have them call us a taxi. His idea saved me. As we pulled into the toll plaza again, an unoccupied taxi materialized out of nowhere. I jumped out of the car before he could pay his toll and asked how much it would cost to get to the airport. He quoted me a fair price and much to the shock of the toll operators, I jumped out of the car and into the taxi and was on my way. As we pulled away, I heard the toll operators yelling in a confused voice, “but where’s your luggage!”
Enrique turned around and made it back to within 2 blocks of our beach house and promptly ran out of gas. If I hadn’t turned around, I would have missed USA/Portugal and Chile/Netherlands. Two lessons learned: gas stations close early and there’s always taxis in Brazil!
Manaus – USA vs. Portugal
I needed to sell two extra tickets to the game and had been anyone wearing US colors if they needed tickets. Luckily the girl sitting next to me on the plane from Brasilia to Manaus needed a ticket, as did another guy she had met in the airport. Turned out the guys she had met were recent UW grads (Badgers are everywhere!) and I now had sold my extra tickets and had friends to hang out with before the game.
It made absolutely no sense to have Manaus be a world cup city. Although its a city of a few million people, it’s completely in the middle of the Amazon. You can’t arrive by road. Just boat and airplane. It’s 90% humidity and 90+ degrees. There’s mosquitos. Spiders. Crime. Hotels are incredibly expensive. And the local soccer team draws about 1000 people per game. But FIFA and its corrupt Brazilian partners decided to make Manaus a venue. They spent at least $300m on a stadium that was used four times and might be used as a jail afterward.
The flight into Manaus is extremely beautiful. You can listen to people describe the Amazon, but until you see it, you can’t appreciate just how big it really is. Swampy wetlands as far as the eye could see. A 1-2 mile wide river. Bright colors. Incredible clouds. But Manaus itself is just another past its prime big city. Manaus was one of the richest cities in the world during the rubber baron era, but when synthetic rubber was invented, it began its first precipitous and now slow decline. The Brazilian government wants to keep its hold on the Amazon, so Manaus is a tax incentive zone where manufacturers can produce products with little to no taxes.
The first thing that you notice when you land is the humidity. It hits you like punch in the face as you leave the airport’s strong air conditioning. You’re sweating immediately. Otherwise once you’re in the city, you’d have no idea you were in the middle of the Amazon.
It was all a bit surreal when we arrived at the American Outlaws party to find 500+ US fans drinking beer, caipirinhas, eating some of the saddest pizza I’ve ever eaten. There was a live band playing patriotic songs and every so often the national anthem would break out. We proceeded to drink beer and hang out with US fans from all around the country that had made the trek to the middle of the Amazon to watch the national team.
We piled into a taxi and were dropped off close to the stadium. We were so hungry that we stopped at the first shack/bar we saw that had food. It didn’t matter that a 13 year old was manning the grill and that the owners didn’t tell me what kind of meat it was until they sheepishly said “beef” after I asked for the 4th time, but in the moment it tasted amazing. You can’t do much better than mystery street meet on a stick in the middle of the amazon! Shockingly, I ate an incredible amount of street food in Brazil and only got mildly sick on my last night from a dodgy “dogao”, or street hotdog, in Salvador.
The stadium itself in Manaus might have been my favorite stand alone stadium. It’s small enough that you’re right on top of the action and the outside design looks like something that could be floating down the amazon. Really beautiful. A great place to see the game. But it just made no sense to build it just for four world cup games. What a colossal waste of money and resources, not to mention making four games nearly impossible for most people to go to.
We had second row tickets in the US section and had a blast. Even though the US went down 1-0 inside five minutes, the fans were into it and screaming the entire game. When Jermaine Jones equalized with one of the best goals of the tournament, the entire US section went crazy. When Dempsey put the US in the lead a few minutes later, people really started to believe the US would qualify. When the ref showed 5 minutes of stoppage time, we booed mercilessly, but didn’t really think Portugal would muster much of an attack. After the first five minutes of the first half, the US really worked Portugal from end to end. But Cristiano wouldn’t be denied and made one of the best passes I’ve seen in person to a diving teammate who scored in the 95th minute. Even though the US had just tied Portugal and had 4 points from two games, it felt like a loss.
We were deflated and left to drown our sorrows in more brazilian churrasco, or steak, rice, beans and farofa. After dinner, we went to a bar for a beer, then I bid my new friends goodbye and went back to the airport to continue my adventure to Sao Paulo to see Netherlands vs. Chile twelve hours later. Manaus was a strange, expensive city in the middle of nowhere, but I’m glad I made the trip.
Sao Paulo – Netherlands vs. Chile
I slept a few hours in the airport, then the entire three hour plane ride and arrived in Campinas, about an hour from Sao Paulo at 6am for a 1pm game. I was still in my same outfit that I’d left 85 degree Recife and 95 degree Manaus, but arrived in 60 degree Sao Paulo in my flip flops, body paint stained US jersey, shorts and sweatshirt. I slept the entire bus ride into Sao Paulo and met up with some Chilean friends.
The look on the my friend’s face was priceless, but all he could muster was “you have something in your eye…” I knew I looked like a wreck, but I had to push on. I met up with another friend a few hours later and took a shower in his hotel room. As soon as I looked at myself in the mirror, I realized I must have scared my friend half to death! Some of the body paint from the night before had gotten into my eyes and had created a white streak across my entire eye. It looked like a big white cut across my eye or some strange tropical disease.
After showering, we took a taxi to the stadium, which is about 45 minutes outside of the main part of the city and met up with Enrique (who had a new Chile jersey for me). He’d had his own adventure, flying in from Recife that morning for the match. The stadium itself is really cool looking, but it was one of my least favorite venues because it’s hard to get to, isolated and there’s nothing to do around the stadium, as it’s located in a poor area of town with no bars, restaurants or really anything around it. And probably 30% of the seats (the ones behind the goal in the upper deck) are really, really far from the field. At least the stadium will be used after the world cup by Corinthians, one of Sao Paulo’s biggest teams.
Chile’s fans were the most impressive and most passionate of any that I came across. There were at least 100,000 in Sao Paulo, many of whom were paying whatever price they could to get into the game. They cheered loud and long during the game, even when they got scored on and even when they ended up loosing. The national anthem was worth the price of admission.
I wish I had taken better photos from our seats in the fourth row, but Chile looked like midgets compared to the Dutch. Chile was the smallest team in the world cup and the dutch were the second tallest. It looked like the u12s were playing the u18s, but the u12s were somehow holding their own. The game featured the two most impressive players I saw in person: Arjen Robben and Alexis Sanchez. Both players change the game just by being on the field.
Natal – Italy vs. Uruguay
After the game we went back to the airport to catch our 3am flight back to Recife. I was so tired and promptly fell asleep beneath a bank of phones and slept until they called our flight and then the entire flight to Recife. Still wearing my same clothes, we got off the plane at 6am and were on our way to Natal for the 1pm Italy/Uruguay game that afternoon. We arrived in Natal at 1030am, parked in the mall, had more gaucho food and then walked to the stadium. We drank a beer while we watched the crowds and met up with a Japanese friend of mine from the Japan/Greece game.
I had two extra tickets to sell and sold to two Uruguay guys who kissed me on the cheek they were so happy to get into the game. I saw one of FIFA’s henchmen directing the police to arrest ticket sellers and then the police taking people away. The saddest was when they arrested a ~25 year old Uruguayan guy with face paint and a flag draped around his back for selling his one extra ticket. He started crying knowing that he would miss the match.
The professionals mostly knew how to avoid the police and never got arrested, as far as I could tell. I saw the same scene at other matches, even when people were selling below face value. It would infinitely more ridiculous a week later when Rio police busted an illegal FIFA ticket selling ring worth a reported $100m per world cup. FIFA’s disgusting corruption really knows no bounds. It’s bad enough that FIFA were reselling their own tickets at 10x face value, but to have the gall to tell police to arrest fans selling single tickets and tickets for below face value is just too much!
The Uruguayan fans were really impressive. They got to the stadium early, chanted and sang though out the game and stayed late. It was a pretty boring game until Italy’s red card, but then the game opened up. Luis Suarez’s bite was right in front of us, but we could only see that he’d done something. I speculated that maybe he bit him, but nobody could believe that he would be so brazen in a world cup. The entire stadium erupted into pandemonium when Uruguay scored to put them into the knockout round and eliminated Italy in the group stage for the second straight world cup.
After the game we had lunch and then made the long drive back to Porto de Galinhas through a driving rain. We had two near death experiences on the road leading into Recife which again drove home the point why Brazilians were mad about spending money on the world cup when basic things like “this lane ends” signs were non existent.
After traveling 5400 miles in three days, sleeping in airports and airplanes for three nights, I was ready to get back to the beach and stay put for awhile. In past world cups I’d never done anything like this and I don’t think I will in the future. It was worth it, but just barely!
Every since I started blogging, I’ve done a year end post summarizing what I’ve done in the past year. These posts are mostly for me, so that I can look back and remember what I did, what I was thinking and what was important to me each year. Previous versions (2000s, 2009,2010, 2011, 2012).
I started and ended 2012 in nearly the same place: on a friend’s rooftop in Santiago, champagne in hand, surrounded by great people, watching a multitude of fireworks explode across Santiago’s expansive skyline. In between, the first part of 2013 continued on 2012’s theme: a time in flux. I started out preparing to become a professor for the first time. My business partner and friend Enrique Fernandez and I completely revamped our entrepreneurship class How to Build a Startup and began teaching at Universidad Católica in Santiago and Universidad Católica del Norte in Antofagasta.
Antofagasta was a real challenge, but it was extremely rewarding. While the two hour flight eight times in twelve weeks was challenging, the hardest part was teaching a class solo, 100% in spanish. I was really nervous my first class and could see from the looks on my students’ faces that they weren’t looking forward to a whole semester with my gringo spanish, but by the second class, I started getting better and by the final class, my spanish was much better and I wasn’t nervous at all.
I’m glad I got to practice in Antofagasta, because in August I taught another class completely in spanish to undergrads at Universidad de Desarrollo in Santiago. It was rewarding to see my students actually learn something each semester, see their self belief growing each week, and seem projects go from ideas to reality.
I traveled back to Wisconsin in August to help organize the fourth annual Forward Technology Festival and was happy to see it keep growing. Matt, Bryan, Forrest and Preston have done an awesome job since I moved to Chile. Forrest continues to grow Capital Entrepreneurs and Madison’s entrepreneurial scene continues to get more national prominence.
While the first half of the year was a year still in flux, the second half was much more focused. After coming back from my trip home in August, I started Andes Property, a real estate investment company focused in Santiago and published The Expat’s Guide to Chile, a book about living, working and doing business in Chile, which has been consistently ranked in the top ten most popular books about Chile on Amazon. I also launched an ecommerce business, La Condoneria, that sells condoms online. It’s been fun to start to build a business from scratch again and to work with two great business partners. In November, I celebrated three years in Chile.
I also made it back to Wisconsin for my family’s Thanksgiving and my group of friends’ 9th annual Friendsgiving. It really was great to get back and see my family twice this year and it was amazing to see our group continue to grow with more engagements and our group’s first kid. I expect both trends to continue in 2014.
I explored more of South America, but didn’t travel as much as I would have liked. I made it to Chiloé and Uruguay, then visited Mendoza when my parents visited Chile for two weeks, and Pucón, Puerto Varas and Frutillar when my friend Polsky came to visit from the US. I’ve done a better job of taking advantage of going to the beach more in 2013 than in 2012, but plan to do it more in 2014.
I didn’t exercise as much as I would have liked, but continued to play squash and increased my soccer. On the sports side, I went to a Chile world cup qualifying match, some chilean club matches and watched the US qualify for the world cup. Overall, it was a year of transitioning into my next projects that I’ve since been able to sink my teeth into. I expect 2014 to be a very interesting one!
A Chilean newspaper asked me an interesting question this week:
What should Chile do in 2014 to make it a better place to be an entrepreneur?
I don’t think my entire answer will get published in the newspaper, so I’ll republish it here. What do you think? And what would you do to make Chile a better place to do business?
1. Continue to push ASECH inspired entrepreneurial reforms
ASECH, the Chilean entrepreneurs association, has pushed laws like making it possible to incorporate a business in one day, for free, without going to a notary, pushed banks to allow entrepreneurs to open bank accounts much more easily, a entrepreneurship bankruptcy law, and has pushed for laws that force large companies to pay in 30-45 days, instead of 90-120 that’s fairly common in Chile. It’s been an incredible success and should be continued.
2. Force large Chilean companies to follow Chile’s competition laws
If you want to foment entrepreneurship, you need a level playing field. Chile currently doesn’t have a level playing field, as large companies routinely price fix and squeeze out new entrants to the market. And many large companies receive little to no punishment when they break the law. No laws need to be changed. Just enforce the ones on the books.
3. Push for a law that requires payment in 30-45 days for most sales
The majority of large companies in Chile pay suppliers, especially new ones, in 90-120 days. In the US its 30. Sometimes 45. If you start a new company in the US, you only need two months or so of operating capital before your sales start to pay your bills. In Chile six or seven months. This kills most people’s ability to start a business before they’ve even started.
4. Pass a personal bankruptcy law
I think it’s very unjust that a bank can loan you money without taking risk. Chilean banks know that they’ll get 100% of their money back at some point because there’s no personal bankruptcy law to discharge a debt. Chilean loans are very one sided contracts, which makes it more difficult to take risks and be an entrepreneur.
5. Tell the truth about entrepreneurship
Entrepreneurs are NOT rockstars or superheroes. Having your own business is a lifestyle and it’s not for everyone. It’s really difficult, but there are many benefits. I’d like to see the government and entrepreneurship groups talk about the reality of being an entrepreneur, rather than blinding building up entrepreneurship as rockstars and superheroes. I fear that when the first crop of entrepreneurs who’ve been told they’re superheroes just for starting a business fails, as most entrepreneurs do, they’ll be so burned that they won’t start another business.