Brazil is considered to be the fifth largest country worldwide in terms of the area.it has a population of more than 200 million people, and most of the people are classified as the, and they live in urban environments. People living in urban areas will tend to have a high demand for goods and services. Brazil is also the largest economy in Latin America and its free in doing business with the neighboring countries. Brazil has an extensive coastline that covers approximately 7,491 kilometers; it’s the only country in South America that borders more countries. Brazil has a port in Sao Paulo, and it is considered to be among the largest port on the continent. Most imports from Europe get accessed through the port.
Brazil is a promising country for people who would love to venture into business there.one has to know the culture of the country to conduct business smoothly. The culture of the Brazilian is said to be diverse in the world. The country is rich in minerals like oil and iron. Most of its population comprises of the young and highly-motivated workforce. Any organization should not underestimate the potential of venturing in to a business in Brazil.
Although corruption might be the biggest challenge that might limit someone to start a business in Brazil, that should not be the limiting factor. Corruption and the political misconduct of the country resulted in the inevitable economic crisis.
Brazil is regarded unfree when it comes to economic freedom; due to the implementation of protectionist policies by the administration, this makes the entry in to the market very difficult. Many professionals who are willing to do business in Brazil have some worries because of the unyielding labor laws, inadequate infrastructure, regulatory requirements and the complicated tax which makes them have some second thoughts.
The government of Brazil is not that open to foreign investors, and we can rate it as below average. Domestic productivity of the country is also very low, and even corruption in governments makes the state not to prosper.as a professional who is willing to start a Business in Brazil the key issue is to understand their culture. Though bureaucracy sometimes restricts conducting business in Brazil freely but taking flexible approaches is practiced widely.
For any investor to succeed in Brazil, they first have to cherish the relationship with the people there. They have to nature healthy relationships between them ant the middlemen, also working closely with the lawyers and the accountants will help them secure help in overcoming any challenges that the “Custo” Brazil might cause. By creating trust between with the middlemen will be very helpful because it will make it easier for them in understanding more details of internal politics in the Brazilians company.
To understand and learn about the work and the related culture of Brazil the perfect place is through the World Business Culture website. It provides more tips that one has to consider while entering into Brazil. One has to avoid speaking in Spanish because Brazilians are the non-Spanish nation in South America that do not speak Spanish. Through the website many investors have learned major issues on logistics, also tax and market entry which has make it easier for the investors to conduct their business in a proper way.
The Netherlands is considered to be the largest investor in Brazil. The Brazilian economy has started showing signs of recovery after many years of economic difficulties and recession. The number of unemployment has reduced, and the inflation rates have also dropped. In the year 2017, the imports and exports in Brazil increased rapidly. GDP is expected to go up to over 2% in the coming years. With the inhabitants of over 200 million and a GDP of USD 1.796 billion, Brazil is considered the most populated with the biggest economy in Latin America. This makes for the companies that are doing major business in Brazil to have a long-term vision and empress patience.
Brazil’s economy is considered to be the 9th largest by nominal GDP. To achieve Its economic growth, Brazil is seen as a mixed economy that relies mostly on import substitution. Brazil has natural resources such as Uranium, timber, gold and iron that estimates to US$21.8 trillion which makes its economy grow fast.
From the year 2000-2012, Brazil was considered to be the major fastest growing economies worldwide with over 5% annual GDP growth rate. And by 2012 its economy supposed that of the United Kingdom, which made Brazil temporarily the sixth largest economy in the world.in 2013 the economy of Brazil went down which made the country to enter a recession in the year 2014.however in 2017 brazil’s economy started to recover, with which in the 1st quarter the growth rate was 1% . And in the second quarter, it grew its economy to 0.3% compared to the previous year which made it to come out of recession officially.
According to the IMF international monetary fund, the economy of Brazil is considered to have a Gross Domestic Product (GDP) of R$6.559 trillion or US$2.080 trillion nominal. This made Brazil ranked as number eight economic wise in the world. The report of 2017 which was produced by the IMF shows that in the ranking of GDP per capita Brazil comes to number 65 in the country with an estimated value of US$10,019 per inhabitant
Issues and concerns about doing business in Brazil
Although Brazil has attracted more foreign investors for the last ten years, some barriers have been hindering the smooth flow of business. And they are considered as the major problems that business people face in the country of Brazil. They include:
Staff turn-over-Brazilians have the habit of changing jobs now and then. Most employees’ quite jobs without any warning; this put the employer to a delicate situation. Where he will be forced to hire another person and due to the urgency he might end up hiring a less qualified candidate. And also the cost of training the new staff might be expensive.
High tax-brazil has a high rate of taxation compared to other countries if you decide to start a company in the country it has been stated that most entrepreneurs use almost 67% of their profits in dealing with tax issues.
Bureaucracy-in Brazil opening a business will take you more than 185 days. Such cases create barriers on imports, foreign investment, and exports which directly affects the growth rate of the economy of the country.
Delaying and absenteeism-in Brazil most of the people there are always late to work or even becoming absent without any valid reason. Also, strike and holidays tend to delay the government departments to deliver their services on time. This will lead many companies workflow to be affected.
Education is also a challenge. It is stated that only 7.9% of the Brazilian population is degree graduates.this is a challenge because when you start your own company in the area, then you will find it hard to get a qualified employees
The number of holidays-most cities in brazils has its own holiday. Most of the holidays are considered to be religion. You can find that in a week there are like four days of a holiday which makes people go to work only in three days. So most of the companies make their workers work extra time so that they can compensate for the days when they were on holidays. People like nurses and doctors might insist on being paid 100% for the day they worked on an overtime basis. Which makes it a challenge to the employer.