The current pandemic has indiscriminately disrupted the lives of millions across the globe. In fact, Brazil was among the top countries hit hardest by this pandemic. However, not even a pandemic could halt Brazilian entrepreneurship. As we slowly adjust to our new normal, many people have decided to start their entrepreneurial journey. To better understand this phenomenon, it is best to examine it in the Brazilian context.
The Spirit of Brazilian Entrepreneurship
Currently, there is an explosion in Brazilian entrepreneurship in response to the pandemic. While true, this statement fails to realize that Brazil has always been an entrepreneurial hotspot. An entrepreneur is an individual who creates a new business and bears most of the burden of bringing success. Entrepreneurs are often seen as innovators due to their ability to come up with new ideas and reimagine the ideas that already exist. It is through the hard work and inspiration of Brazilian innovators that companies like Fashinnovation even exist.
Entrepreneurship has been prevalent in Brazil for many years prior to recent events. In fact, there have been more young entrepreneurs in Brazil than in the United States for a long while. Back in 2012, Forbes labeled Brazil as one of the most entrepreneurial countries in the world. At that time nearly one in four adults were self-employed in some form.
Now, nearly ten years later, Brazil’s GDP still continues to grow largely through the expansion of its private sector. As stated earlier, entrepreneurs are innovators and always adapt to changing markets and environments. Many of the small and medium enterprises starting in Brazil lately have been in the information and communication technology (ICT) sector.
An Environment for Entrepreneurship
In order to foster an entrepreneurial mindset within a population, several factors have to be in play. These factors have to do with the socioeconomic pressures that people have to face along with increased standards of living. Unequal access to quality education is one of the many reasons that might lead people to start their own businesses.
Much like the United States, Brazil has a wealth gap that is widening. Socioeconomics affects the quality of the education available. Those who belong to lower-income households tend to have fewer opportunities to attain higher education. A more advanced level of education would allow them to apply to higher-earning positions. For people in this situation, entrepreneurship gives them the ability to have more control over the money they are able to make.
However, other factors, such as an unmet demand, can also lead to entrepreneurship. After all, necessity is the mother of invention. To give your start-up the best chance for success, it is always a good idea to fill that void. The advancement of the internet makes it even easier for people to establish and promote new companies. By adopting an e-commerce approach, it is possible to reduce the overhead expenses traditionally associated with maintaining a traditional store. Fortunately, there is a multitude of tools specializing in improving the e-commerce experience that companies provide to their customers.
Promoting Entrepreneurship in Brazil
To state the obvious, business is good for the economy. So it is only natural that, in an attempt to boost Brazil’s economy, there would be efforts to encourage Brazilian entrepreneurship and the creation of more businesses. Especially after a period where trade had slowed on a global scale.
As much as education inequality can be a driving factor for entrepreneurship, it can also be a hindrance. In schools, it is not a part of the curriculum to teach students how to start their own companies. Entrepreneurs will typically develop their skills through trial and error. Without proper guidance or after consecutive failures, it will be hard to turn a simple idea into a business.
Supporting Brazilian Entrepreneurs
Now imagine if there were classes available to provide you with the basic knowledge. Luckily, there are. Some companies have been established with one major purpose. Their purposes are to help small and micro business owners develop and cultivate the skills necessary to run a successful business. An example of such a company is Tamo Junto.
Tamo Junto is a non-profit organization that offers classes to support Brazilian entrepreneurship. The courses offered are free and online so that they are easily accessible. In addition to the free instructional courses, you can also find helpful content such as articles and videos.
While Tamo Junto focuses on the educational aspect and skills needed to run a small company, governmental assistance is accessible as well. In Brazil, there are federal programs that have been created aimed at providing companies with credit subsidiaries. This credit is fundamental in helping companies attain assets and expand. Programs through the national bank provide necessary credit for companies that may have otherwise been ineligible for loans. Financial support is just as important to small business owners as educational support. So much so that 48.6% of these credit resources are allocated to micro-businesses.
Furthering Brazilian Entrepreneurship
In order to properly support and promote entrepreneurship in Brazil, entrepreneurs need to be provided with accurate and up-to-date resources. It is one thing to learn the theory of how to run a business and another thing to put that knowledge into practice. Through the grassroots and federal efforts, Brazil is a great environment for small businesses. However, when running a business, it is important to remember one thing. The abilities of individuals determine the success of a company. To jumpstart your entrepreneurial education, you can look up some of the soft skills that every entrepreneur should possess here.