BRAZIL CALLING
A vibrant market for high-growth businesses
By Sarah Shields, Executive Director, Consumer and Small Business, Dell UK and Ireland
B
usinesses across Britain are constantly looking at new ways to expand and grow their company, whether it
is cross
country or into new countries. One international market that should be considered more is Brazil. In the last decade, Brazil has become one of the fastest growing emerging markets. It has the largest economy in Latin America and is currently 6th in the world taking over the UK last year, in the Centre for Economics and Business Research (Cebr) World Economic League Table.
Growth opportunities in Brazil are abundant, both in terms of companies starting out,
and for companies
looking to expand into the market. When Prime Minister David Cameron travelled to Brazil recently, he came back encouraging UK businesses to boost its exports with Brazil, especially in areas such as technology, science and agriculture. According to
the
UKTI, Brazil is one of the world’s most rapidly developing economies, with a GDP per head greater than China.
For small companies Brazil has lots to offer. It will be host to two of the world’s largest sporting events in the next ten years; the FIFA World Cup in 2014 and the Summer Olympics in 2016. There is also increased investment in new infrastructure which has led
18 entrepreneurcountry
to new business and partnership opportunities that can be capitalised upon by small businesses.
Brazil’s dynamic economy will provide a wealth of prospects for UK firms in the coming decade, not just in its established cities but increasingly, in Brazil’s regional lesser-known centres. Brazil is fortunate to have two expanding cities which are both welcoming to foreign businesses, Rio de Janeiro and Sao Paulo. In the last few years both have grown extensively and have been quoted as a place for multinationals to open a Brazil office. UK businesses should consider both cities when looking to export internationally.
But, as with any business venture, it
is essential that understand the dynamics of
entrepreneurs the
business environment of the market they are targeting. Here are a few things to consider when looking at breaking into the Brazilian market:
Understand Culture and Customs: Brazil is known for its hospitality, openness and vibrant events, making it extremely appealing for any foreign business. However, before any small business considers exporting to Brazil they need to do their research, as there are 26 different administrative states all with their own character, traditions and economic profiles. Finding out the best one can make all the difference in generating the best results for your business. Take a look
at
www.DHLGuide.co.uk, which has a ‘going global’ section of the website, offering more information on customs in Brazil and the different nuances in every state.
Take advantage of partnerships and joint ventures: It’s necessary to understand the regulations attached to the business sector before embarking on any venture. Many small businesses face
obstacles exporting to Brazil
due to the taxation system. There are 60 separate processes involved in opening a business in Brazil, which takes 120 days on average to complete. It’s easier and often advised to enter the Brazilian market through a partnership or joint venture to allow time to learn the market from someone who’s already familiar with it.
Brazilbusiness.com is a useful site, offering information on topics such as as tax, import, legal and investment. The British Embassy Brazil is also helpful, assisting businesses on every step of the exporting journey in both the UK and overseas. The UKTI can also work with companies to develop a new market strategy to ensure it is
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