"The Monograph is an instrument for exploration, guidance and inspiration for
the government, business community and university students."

Eduardo Arroyo
Organizational Consultant

"The work addresses the core of one of our main challenges: It articulates the role and the centrality of
Puerto Rican entrepreneurs and family businesses in our economic development."

Alfredo Carrasquillo
Executive Coach and Organizational Psychologist

"The economics of small and medium enterprises is the thread that interweaves the fabric of a
country’s economic capacity. Nothing will be achieved if we do not develop a generation of
entrepreneurial persons that venture to start and find success with a small business."

José Alberto Morales
Former President
Pontifical Catholic University of Puerto Rico
University of the Sacred Heart

"SMEs and family business, as well as the challenges they face, are most important for
our economic development. We have much assistance for startups but limited support
for the mature or family stages of a business."

Jaime Morales CORDERO
Specialist Economic Development and Entrepreneurship

"A most interesting and illustrative work to which you bring ample experience…much to learn."

José M. Romaguera
Author - "The Entrepreneurial Spark"

"Small business are the life-blood of the Puerto Rican economy. They suffer the same problems as
larger enterprises, with hardly any of the resources and all the drama of family dynamics."

Miguel Soto-Class
President and Founder, Center for a New Economy

PRICE: $29.95



Chapter One


  • Puerto Rico’s predicament
  • Upcoming consequences
  • This Monograph

Chapter Two

Economic Prosperity

  • Backdrop
  • There is always a beginning
  • Showcase to the world
  • The petrochemical interlude
  • 936 and beyond
  • The idyllic riches of Operation Bootstrap
  • Economic growth and development

Chapter Three

Economic Adversity

  • Economic quagmire
  • Bureau of Economic Analysis
  • Unheeded qualified economic advice
  • Reckless governance led to massive debt
  • Shameful rate of participation
  • Manufacturing’s employment demise
  • Lack of inventive tourist attractions
  • Developed tertiary economic sector
  • NAFTA, WTO, ASEAN and 936
  • The umbrella solution
  • Competing for Direct Foreign Investment
  • Outsourcing economic development
  • Competitive underperformance
  • Dependency economic development
  • Loophole economic development
  • Disaster-recovery economic development
  • Corruption in Puerto Rico’s government

Chapter Four

The Governance Framework

  • Corruption: the anti-governance curse
  • On Corporate Governance
  • Corruption and economic development
  • Governance and economic development
  • Roadmap to good governance

Chapter Five

Small and Medium Size Enterprises (SMEs)

  • The global small business spectrum
  • Small businesses in economic development
  • SMEs in Puerto Rico
  • Legal framework for SMEs in Puerto Rico
  • LAW 62 – 2014, in support of SMEs
  • The 'start-up' support ecosystem
  • Lack of a 'mature-SME' support ecosystem
  • Institutions and organizations

Chapter Six

The Family Business

  • Transition from SME to family business
  • Family business: a millenary institution
  • Family businesses in world economies
  • Characteristics
  • Advantages and disadvantages
  • Social cohesion
  • Three systems in one
  • Family business Lifecycles
  • Professionalism in the Family business
  • Strategic Governance for the Family business

Chapter Seven

Engines of Growth

  • Prospective strategy for economic growth
  • Once again, unheeded qualified advice?
  • Drivers of economic growth
  • Government support for the SME community
  • Focused public policy a must
  • SME engines of growth in the real world

Chapter Eight


  • U.S.A. does not have friends, it has interests
  • The worst may be yet to come
  • Global competitive economic milieu
  • About the Author
  • Bibliography

From the preface

Four interrelated assertions form the central premise of this commentary on Puerto Rico’s economy:

  • An underutilized and unproductive relationship with the United States as a result of
    Puerto Rico’s long-lasting economic dependency on fiscal federalism and partisanship.
  • This dependency has muted the island’s interest, need and determination to recognize,
    organize and empower our most significant economic resource: Small and Medium Size
    Enterprises (SMEs), family businesses and local capital.
  • Disregard of good governance, strategic intent, purpose and definition of the island’s
    economic role in the 21st Century’s technology centered global geography.
  • Politically expedient proposals must give way to economic development strategies and
    programs based on constitutional mandates to improve Puerto Rico’s prosperity,
    wellbeing and standard of living.

...The purpose of the Monography is dual. First, present certain governance deficient decisions by
Puerto Rican governments and other events contributing to the island’s predicament, economic
stagnation and absence of direction. Second, assert that SMEs, family businesses and local capital
must be central in government programs strategies and initiatives to improve the island’s prosperity,
economic growth and development. They are truly a vital asset in restoring growth in Puerto Rico...

Manuel Morales Jr.

Manuel Morales, Jr.
AUTHOR AND Founder Instituto Negocio de Familia

An eclectic entrepreneur whose latest initiative 'Instituto Negocio de Familia' provides governance
education, advisory services, seminars and conferences to professionalize the family business. In the
mature stage of their life cycle these firms strive to improve unique family challenges of discipline, order
and structure as they take the business to leadership transitions to increase value, competitiveness,
longevity and profitability. He has started eight businesses and served on numerous family and non-family
Board of Directors in a wide variety of private and institutional organizations, including commercial
banking, manufacturing, health, philanthropic, publishing, academic and government.