There are many definitions of entrepreneurship, but mostly it is considered as the “skill in starting new businesses, especially when this involves seeing new opportunities” (Cambridge Dictionary).
If you feel a personal connection with that definition, maybe it is time to go one step further and become an entrepreneur yourself.
Timeline of entrepreneurship in Brazil
In Brazil, entrepreneurship began to take off in the 1990s, with the Support Service for Micro and Small Enterprises and the Brazilian Society for Software Export.
Before then, the economic-political scenario did not offer the necessary input for the entrepreneur, and the consequence is palpable: until that time, there was no significant environment for entrepreneurship in the country, as consistency in this activity came along with incentives and a more prosperous scenario for the growth of SMEs.
This process was then intensified with the investment of the Federal Government, which promoted an advancement in the entrepreneurship scene.
Since then, however, some challenges such as excessive bureaucracy and high tax rates seem to be burdened when it comes to entrepreneurship in Brazil – but they are possible to be overcome, as, Brazilian people pursue values such as profit, growth, satisfaction, and personal fulfillment, which are among the main motivations for those who want to undertake the mission.
How to overcome the challenges of entrepreneurship in Brazil
01 – Studying the market
As “Market” is a broad concept, there is a need for good research about the market competition, and its current status: growing, favorable, static, or risky.
This will define the challenges and opportunities your business may face.
02 – Being focused on opportunities
Being aware of opportunities is essential for those who want to open their own business. Brazil, as one of the most populated countries of the world, potential is plenty, as it has a vast amount of potential consumers to approach.
Furthermore, Brazil shines as a member of Mercosur, a regional commercial block within countries from South America. Therefore, an entrepreneur can take advantage of trade agreements with countries such as Paraguay, Argentina and Uruguay.
If you seek strategic international trade, Brazil can be the best way to invest.
03 – Planning every step
As the saying goes, “Rome wasn’t built in a day”. Keep this in mind and plan each step of your project well, in order to develop your strategy and be truly efficient, especially if you are thinking about expanding your products and services to Brazil. Yet, when necessary, pivot and adapt as required, no strategy should be set in stone.
04 – Being supported by an experienced team from Brazil
The reform of legal codes and rules for the opening and operating of a business in Brazil did not adapt at the same speed as the economy grew. Hence, it represents several obstacles for foreign companies.
Having an expert team to help you understand and close deals in Brazil is essential!
ILM GROUP: Your business partner and consultant in Brazil
If you are looking for a reliable team to support you in your endeavors, count on ILM Group.
In line with our one-stop-shop philosophy, we offer professional and customized management solutions, which enable our customers to focus on their core business.
Thus, you can count on administrative, accounting, tax compliance and other services, all of them aiming at facilitating the success of your business in Brazil.
Our experienced and dynamic team is composed of over 25 multilingual executives, economists, accountants, and auditors, and provides fiduciary and administrative services to a growing number of clients.
Get to know some of our services:
– Fiduciary Services: foreign companies and entrepreneurs demanding to incorporate Brazilian companies or acquiring equity participation, must nominate a Brazilian resident as their attorney-in-fact. The general manager(Administrator) of a Brazilian company must also be resident in Brazil.
Within the scope of our “One-Stop-Shop”; strategy, we take responsibility as the representatives of both the attorney-in-fact as well as the general manager of our clients. We keep our clients updated on all important developments and coordinate the Brazilian back office and accounting as needed.
In other words, we are our clients’ extension in Brazil and safeguard their interests.
Finally, we provide business addresses to Brazilian companies for the short and/or the long term when wished, and as required by local authorities.
– Financial Services: upon request, we take responsibility for bank account management of our clients nationwide.
Accordingly, while our clients can remain focused on expanding their business in Brazil, we make their payments (based on the four-eyes principle), interact with the Brazilian banks, local authorities, and accountants.
– Accounting and auditing: we offer accounting and auditing services. Our accounting team has extensive experience supporting subsidiaries of foreign companies and producing accounting reports in compliance with national and international accounting standards.
– Technology companies – Tax Optimization and Market Entry: for tech and software companies in the internationalization phase, we offer business models allowing our clients to issue tax-optimized Brazilian invoices without the need of incorporating and managing complex and expensive structures in Brazil.
Furthermore, we can also provide comprehensive advice to tech and software companies, allowing them to understand the potential of the Brazilian market, target customers and understand the competition.
It is easy to find the opportunities outweighing the challenges, and taking advantage of them in Brazil. With the right team on your side, you can enjoy great success and avoid the potential pitfalls.
If you demand further information about entrepreneurship in Brazil, expansion to Brazil, or would like to talk to one of our business consultants, feel free to fill in the contact form on our website or to send us an email. Our team will be happy to help.