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The report explains why Brazil should be considered for Pyramid International Inc. to start its new business through two major entrepreneurship programs, SEED and MEX Brasil, where the first one is focused on national and abroad companies that are considering undertake in this country (which is the Pyramid case), and the second is specially focused on the encouragement and development of female entrepreneurship in Brazil.
By creating strategic plans encompassing topics such as settlement and financial issues, Pyramid International will be able to take advantage of Brazil current’s scenario like the open opportunities and the currency and contribute to the economy of Brazil at the same time.
Female leadership has a positive impact on the market and business. Her presence not only in the work environment, but also in management positions offers a market with more diversity and extraordinary points of view. When a woman starts her own business and owns her own money, she becomes the owner of her own story. When a woman owns her own story, she is more likely to stop cycles of violence against herself and her family. When a woman undertakes, she reinvests in her family. Thus, the whole society wins and progress together.
Brazil, the eighth-largest economy in the world and developing country deserves special attention for the good opportunities that Pyramid International Inc. can be benefit in the process of starting a small, but promising business in this nation.
As a developing country, Brazil is still growing in the entrepreneurship market. However, this country has been already created a series of initiatives, program groups and legal instruments promoted at federal, state and municipal levels in order to assure rights and support who is now entering the universe of Brazilian entrepreneurship.
Among all the special programs for start-ups and enterprises, Brazil hosts two important programs focused on international companies like Pyramid. They are the SEED, and MEX Brasil.
SEED is a program created by the Brazilian Government of Minas Gerais State with the purpose of support and encourage Brazilian and international entrepreneurs focused on technological-based projects development.
SEED has been assisted over 100 projects from entrepreneurs from approximately 11 countries where it has raised about C$ 6.9 million in investments in Brazil. For six months the program fortifies, promotes and raises ideas of 40 national and international start-ups (SEED, 2019).
To support eligible national and international enterprises, the program offers a total amount of over R$ 65,000 (approximately C$ 22,410) for projects l ed by two to three entrepreneurs, or R$ 80,000 (approximately C$ 27,590) for projects made by three entrepreneurs. A parcel of this investment is monthly given to each businessperson for living costs, and the other part is used entirely for company’s development.
Focusing on Governmental strategies towards women businesses, this report also presents “MEX Brasil – Espaço Mulheres Executivas”, in English, MEX Brasil – Executive Women Space.
Created in 2006, MEX is an independent non-religious, non-political and non-financially supported group made by women, with a clear mission of connecting business and executive women in order to encourage personal and professional development through their seven elements of women empowerment:
- Opportunities equity; inclusion, not discrimination
- Health, safety and the end of violence
- Academic experience
- Corporate development and supplier chain practices
- Community leadership and engagement
- Transparency, measurements and reports” (SEED, 2019)
SEED has been committed with female partnership in the corporate environment. This movement has been gaining power over the years and has fomented the Business Alliance for Women Development, with monthly meetings along with executive and entrepreneurs women managing small, medium and large companies (MEX, 2017).
Researches shows that taxes in which small and medium companies led and managed by women must pay in Brazil, are the same as all other entrepreneurs, no specific strategies focused on this field.
For Latin America and the Caribbean, the IADB (Inter-American Development Bank) and MIF (Multilateral Investment Fund) created the Women Entrepreneurship Banking, “a project that offers banks and other financial intermediaries, incentives to develop and implement innovative lending models for women-led micro, small and medium enterprises” (ConnectAmericas, 2015).
This project provides encouragements for Latin American financial mediators to introduce original and comprehensive loan models for micro, small and medium enterprises (MSMEs) led by women. By using a special combination of lending, agreements and technologic support, banks and additional financial parties have all the mechanisms to adapt financial products and / or services in order to turn necessities into suitable for female MSMEs. Their target is to simplify access to credit to approximately one thousand women-led businesses by the end of this year.
Speaking specifically for Brazil, there are two financial institutions committed to this project, which are BID Invest and the bank of Itaú Unibanco.
IDB Invest, a subdivision of the Inter-American Development Bank (IDB) Group, has launched a multimillionaire loan amount to Itaú Bank in Brazil. This program assists micro to medium companies in this developing country that are owned mostly by women looking for available financing increasing in this market.
This IDB Invest loan is going to help to ascend the Mulher Empreendedora (Entrepreneur Woman) program of Itaú. The main target of this project is to empower Brazilian female entrepreneurs, who are rising in number and increasing their contribution to the economy (Escudero, 2017)
It is not a surprise that women must be constantly proving to society that are capable to manage their own businesses and that are also able to conquer their space as an entrepreneur. This is a relevant topic and deserves special attention to make sure Pyramid International will not be harmed by possible complications.
This report lists the most challenges of female entrepreneurship in Brazil:
- Lack of appropriate training
- Disadvantageous division of household responsibilities
- Preference for men-led businesses (i.e. number of men CEO’s vs women CEO’s I the world)
- Lack of affective and social support
- Difficulties in getting financings
- Difficulty in auto-confidence and acceptance (Loiola, 2016, p. 17)
The lack of family, friends and banks support are the biggest complaints made by women. Also, the lack of trust of their customers, suppliers and shareholders comes next.
In addition, the majority of financial resources for a woman to start her own business in countries like Brazil, France and Canada comes from personal savings, and sometimes from family and friends lending (Loiola, 2016, p. 17).
Conclusion and Recommendations
The report discoursed women empowerment through entrepreneurship in a developing country, in this case, Brazil. Discussed subjects were fixated on Government, Finance and challenges Pyramid must be aware of before undertakes in a new country.
The research recommended utilizing two main projects available in Brazil towards companies with Pyramid profile.
- ConnectAmericas. (2015). FOMIN promotes new lending models for women entrepreneurs. Retrieved from Connect Americas: https://connectamericas.com/
- Escudero, A. L. (2017, November 28). IDB Invest finances women-owned MSMEs in Brazil together with Itaú Unibanco. Retrieved from Inter-American Development Bank: https://www.iadb.org/en
- Loiola, C. C. (2016, June). Retrieved from Maxwell: https://www.maxwell.vrac.puc-rio.br/29910/29910.PDF
- MEX. (2017). Que Somos. Retrieved from MEX Brasil: https://www.espacomulheresexecutivas.com/
- SEED. (2019). SEED. Retrieved from SEED: http://seed.mg.gov.br/?lang=en
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