
Arguably the new government of Michel Temer may be no more acceptable. Fewer than ten per cent of Brazilians say they trust him, his cabinet appointments have been misogynistic and the appointment of creationist evangelicals to key posts is raising eyebrows. But for Brazilian companies, and for 99 per cent of the population, it’s very much business as usual.
I’ve just returned from meetings with several recent startups in Brazil and can vouch for the continuing high level of enthusiastic confidence and am confident that such firms will achieve great economic success. Nobody is fazed by the political situation – even if so many other untrustworthy politicians remain in office, Dilma’s departure is seen as a first and big step towards improving the country. It’s true that the economy has nose-dived in the last year, but this is more down to the depressed mining sector that has become increasingly reliant on the Chinese market, which has largely dried up. The spark that came with the discovery of huge oil reserves under the sea off Rio has dampened more due to the fall in oil prices than the “car wash” corruption scandal at Petrobras. Unfortunately, the scandals have further discouraged foreign direct investment and business expansion in Brazil. However, the reality is that corruption is off the map for most businesses. I’ve set up, managed and grown several companies there since 2006, and have never in that time seen suggestions of bribery or false accounting. That’s not to say it doesn’t exist – when it comes to government or very large corporate contracts, it clearly does. I can see how some Brazilian accounting practices, such as allowing small businesses to work on “Lucro Presumido” (presumed profit) could support it. But I believe that international businesses starting up in Brazil can be confident that they won’t get involved in any way.- Dealing with the obstacles of trading with China
- Getting your share of the exciting Indian market
- Cracking the sought-after US market
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