Entrepreneurship in Brazil
In 2004, Brazil was the 3rd largest export market for U.S. goods and services.
- In 2004 Brazil’s GDP exceeded $812 Billion Dollars.
- Sometimes Highest TEA level in the world.
- South America’s dominant economy.
- Part of MERCOSUL, 2nd largest customs union in the world and fourth largest consumer market with a GDP of $221.44 Billion Dollars.
- In 2004 Brazil’s population exceeded 177 million
- More than 79 million people in the workforce.
- Majority of their industrial activity is concentrated in the south.
- Brazil’s landmass is larger than the U.S. at 3,290,000 sq. mi.
- World’s 4th largest road system and a large % of the world’s navigable rivers.
Brazil is a leader in entrepreneurship, with an estimated one in eight adults being “entrepreneurs.” Much of the business that occurs in Brazil is done by single businesspeople either selling their homemade goods or providing their services. Foreign entrepreneurship is a bit of a rarity in Brazil. It is simple for a local businessperson to open a business by, in most cases, circumventing the typical red tape associated with starting a business. The regulatory boards are so poorly managed and so open to bribes that local entrepreneurs can easily sneak by without following proper procedure. For foreign businesspeople it is much more difficult. Foreigners draw attention to themselves (by merely being foreigners) and therefore fall prey to greater scrutiny. It is imperative for the foreign businessperson to hire a good despachante or broker to handle their interactions with government officials.
The TEA in Brazil is a little more than 13. Also almost half of this number is women (46%), which is up from 4 years ago when it was only 29%. New programs have recently been started to help women become even more involved. Opportunity based entrepreneurship and need based entrepreneurship are close to being equal.
One of the major problems to getting started in Brazil is paperwork. Bureaucracy in Brazil is very bad and it takes a while for things to get through certain channels. Despite this, Brazil ranks very high on the Global Entrepreneurship Model (GEM) list of countries with the highest entrepreneurial activity.