With a population of more than 200 million, Brazil is the second-most populated country in the Americas after the United States and the fifth-largest country in the world by area. Because most of this population lives in cities and belongs to the middle class, there is a constant need for new products and services despite Brazil’s unstable economy, stringent regulations, apparently never-ending political scandals, high taxes, and a famously challenging business climate.
Operating a business in Brazil is no easy task because it is one of the most difficult places in the world to do business. The goal for any company doing business in Latin America, though, can be to take a piece of this tremendously vast and tech-savvy consumer base. For individuals who like taking risks and are prepared to work their way through Brazil’s ecosystem, there are several prospects for entrepreneurs and investors to produce Silicon Valley-style returns.
Investor-Friendly Initiatives
The Brazilian Investor Visa Program is one of the most interesting investment opportunities in Brazil for foreign investors. It offers the chance to acquire permanent residency to anyone in a partnership with a Brazilian business, as well as to those interested in investing in Internet-based businesses, real estate, or government bonds.
Investors can easily travel throughout the rest of South America once the visa is granted, which is a relatively simple process. After four years of residency, they can even obtain full Brazilian citizenship. The opportunity to live and work in Brazil for an individual and their family, access to the same rights and benefits as a Brazilian citizen and no temporal limits on residency requirements are further advantages of the investor visa.
E-Commerce Opportunities
Brazilians spend a lot of time online, which offers some exciting opportunities for businesses in this rapidly developing market. For those in the e-commerce space. Brazilians use social media more than anyone else in the world and spend between 32 and 38 hours each month online. The fact that 37% of Brazilian internet users are above the age of 35 presents special chances for businesses looking to target an older online audience. Many Brazilians use smartphones to access the Internet, opening novel prospects for mobile-friendly shopping and online payment options.
Retailers should think about opening a shop on Dafiti.com, Brazil’s most well-liked marketplace for apparel, accessories, beauty items, and home goods, or MercadoLivre, the “eBay” of Latin America, for a rapid and inexpensive entry into the Brazilian market. Over 50 million people visit Dafiti.com every month. These websites can be a much easier method to browse and test the Brazilian market before expanding in the country, even though establishing a marketplace has its challenges, such as handling the logistics of delivery.
You must register as a local corporation in Brazil if you intend to sell on a Brazilian marketplace or create a local Brazilian website with the a.com.br domain.
The Startup Ecosystem
Brazilian startups had little access to funding for their projects not so long ago. The nation’s entrepreneurial environment is nevertheless steadily gaining steam thanks to fresh government initiatives and rising investor interest.
Brazil’s largest city and the center of the startup scene is Sao Paulo. The city is home to businesses like VivaReal, an online marketplace for real estate, Dafiti, and Kekanto, a social network for recommendations. The biggest banks have also created whole departments committed to fostering So Paulo’s burgeoning fintech industry.
Accessible coworking spaces include a plug.co, CUBO, and Impact Hub. Additionally, there is no shortage of accelerator programs and investment firms that support the establishment and expansion of Brazilian entrepreneurs. The most well-known investment companies include Monashees, Associaço Brasileira de Private Equity & Venture Capital (ABVCAP), Instituto Inovaço, Ideiasnet, Confrapar, Warehouse Investimentos, and Astella Investimentos. To bridge the gap between seed funding and later rounds, international companies like Microsoft and Visa have also opened offices in Brazil.
Anyone up for the endeavor will find Brazil to be gratifying and challenging. Brazil is highly robust, it will survive the crisis, and it will continue to thrive because it is an economy with plenty of resources and people.
