Doing Business in Brazil

Brazil is a country located in Latin America with a population of around 210 million people.
It’s capital is located in Rio de Janeiro and other important cities are Sao Paulo and Salvador.

According to the Global Entrepreneurship Monitor and Doing Business website, Brazil is
overall a good place to start a business sitting above the regional average with 60.01 points
compared with the average of 58.97. There are many factors that support this statement.
One of them is that, in Brazil, there is enough financing for entrepreneurs compared with its
neighbours. It is one of the easiest country to get permanent electricity in Latin America and
it is also very cheap. Other utilities are also easy to obtain because Brazil has a well
developed physical infrastructure. Commercial and professional infrastructure might need
some improvement, but there are sufficient legal and assessment services and institutions
that promote business. Brazil stands very good at protecting investors when corporate
assets are misused, therefore investing in a Brazilian company might be a good idea.
Another factor which can be either a positive or negative one is the dynamism of the
markets. Brazil has a very dynamic market with a high level of change across markets from
year to year. This cause price instability, but this can be used to boost sales, maximize
profits and also this provides more insights into customer behaviour.

The main problem regarding doing business in Brazil is that there is low government support
for the entrepreneurs because the policies do not encourage businesses and there are very
few government programs that encourage opening a business. There are many taxes and
lots of bureaucracy that must be done in order to open a business in Brazil. If you do not
have the money to open a business, getting a credit will not be easy either. The legal rights
for borrowers and lenders are some of the weakest in Latin America. Also, from a cultural-
educational point of view, entrepreneurship in Brazil is not seen as a good alternative. It is
very difficult for a new business to penetrate an existing market and the research and
development done in Brazil is not enough for new commercial opportunities to appear.

In conclusion, Brazil is not the best place to do business but is not the worst one either. The
well developed infrastructure is the main factor supporting this statement because getting
the papers is easier than getting the material necessary for production, or selling the goods.