People often ask me what are the largest challenges of working across borders in business. I always hate to be asked this because I am a truth teller and it forces me to be honest about a subject that I know is layered. So while I have struggled, sometimes very badly, in my entrepreneurial journey, I acknowledge that I have done this in a so called first world nation.
I have struggled without any real threat of war on my soil and a certain amount of stability that even if I lost my home I would not starve. So I write this recognizing that. With that said, the greatest challenge I have faced working across borders in Black and brown nations is “Hand to Mouth Mentality”.
Just yesterday I took a taxi to a small little resturant in Fogo Cape Verde that I have eaten at in the past many times. It is my goal to give my travelers an authentic experience while blessing some of the smaller locations with business. The waitress did not speak English (nor did I expect her to) so she called the owner on the phone. He must have lived in the US at some point because he spoke American English. I explained to him what I wanted and we made an agreement to meet at 10:30 am the next morning. This one group, along with the extras I wanted, would probably be what they make in an entire month. I ordered my food and enjoyed my meal. When it was time to pay, their credit card machine did not function. This is typical in CV but I had run out of escudos and only had dollars. In the menu they stated that if you used US dollars 3 escudos would be taken off the market rate. Okay. It is work to have to exchange currency so I get it. The dollar was at 95 almost 96 so $20 covered our meal plus some. The waitress was hesitant to take the money and called the owner. The same man I had just spoken to. Not only did he want to take the 3 escudos off the listed rate he also wanted to devalue my dollar by 5. Which would make me short by about .70 cents. He refused my $20 which was in fact more than I owed over the .70 cents. Even though I could have easily brought him the change during our meeting. Even though I had already committed to 100 time more than that .70 cents for future business. This arguement wasted 25 minutes of my time. I of course was no longer interested in doing business with him. I still left without paying the .70 cents. I will take him .70 cents today and find another resturant for my group. To him that short term change was worth the risk of the long term money.
Now I get it. I don’t know what it is like to have lived in a country that has faced extreme poverty. Many business owners I meet, no matter how successful they are, can only see what is in front of them today, at the very moment. Perhaps they can’t trust the future. But what I know is no matter where this mentality is rooted it is sure to keep you poor. You have to be able to assess the long term game in business and always play the hand that has the most opportunity for larger money. You NEVER risk $700 for .70cents. EVER. Even if the $700 does not materialize it was worth the gamble.
Business is often a game of perception. I have been in situations where I needed .70 cents just to eat that day but you never let a potential business partner see your struggle. You have automatically shown them your hand and you have lost your equal seat at the table. Your desperation will either turn them off or give space for them to take advantage of you. At the end of the day this happens everywhere but more in communities and nations that look like me. I have opted out of working in whole countries because their hand to mouth mentality seemed to be a way of life. I have seen governments make these type of decisions with the sale of public land and resources for small money to save them from a small current crisis. Their decisions will mean suffering in the long term. We have to address these behaviors that are keeping us from growth and development my people. We can not be winners in a global economy without long term vision. Love, T.