A 2023 Sebrae survey revealed that Brazil, and consequently Brazilians, are among the populations most eager to start businesses. We occupy 8th place in the global ranking of entrepreneurs, with 30.11% of the adult population involved in the business world. In 2024, according to another study by GEM, this number rose to 33.41%, representing one-third of our population. This data highlights the notable and growing desire and attempts by Brazilians to become entrepreneurs. However, many end up acting without guidance, which negatively impacts the growth and financial sustainability of these businesses.
While it's interesting to consider the reasons behind this high number in Brazil, we need to emphasize the importance of analyzing the mortality rate within the sector. In a 2022 study by the IBGE, for example, 60% of companies in Brazil do not survive after five years of operation. This is a very alarming figure for anyone looking to start a business: despite Brazilians having a very strong entrepreneurial spirit, many are disappointed with the results and have no option but to declare bankruptcy. But why does this happen?
According to another study conducted by Sebrae, based on data from the RFB (Brazilian Federal Revenue Service) and field research carried out between 2018 and 2021, the three main factors causing business failure are: insufficient personal preparation, deficient business planning, and deficient business management.
On the one hand, Brazilians seek to become entrepreneurs, and this should be praised. However, creating businesses without adequate planning and personal preparation only results, in most cases, in wasted money.
Analyzing most companies from a marketing perspective, many lack differentiation, and it's necessary to understand that having one or more differentiators is now essential even to begin traveling this "entrepreneur highway."
To illustrate, imagine a potential customer looking for a shirt. Between two companies, one offers advantages in its values, payment methods, and even in environmentally focused actions. In contrast, the second company was recently created, lacks differentiating factors, and, in addition, presents stricter payment methods than its competitor. It's clear that the end consumer will definitively choose the first option.
Brands lacking differentiation will be treated as commodities. They are simply different locations selling the same "rice and beans," without a competitive advantage or attractive features. This was also confirmed in another study conducted by Think Consumer Goods and published by Google, which found that 64% of Brazilians do not have preferred brands and take factors such as price and personal values into account when making their product choices.
In Generation Z (Gen Z), comprising those born from 1995 onwards, brand infidelity reaches 65%, according to the research. This research suggests that Brazilians, particularly from this generation, will seek brands aligned with their values, potentially foregoing large chains in favor of smaller businesses offering appealing differentiators.
This scenario highlights that, if you lack differentiators, potential customers will choose to buy from a competitor that possesses these unique selling points. Today's market has become complex, and because of this, brands that think of selling products as commodities will not succeed.
While some sell a sneaker, others sell a Nike running shoe, in a chain of stores committed to sustainability, solidarity and social responsibility actions, focus on customer experience, valuing human values, purposeful digital engagement, etc. It all depends on how you position yourself and differentiate from those who do the same as your business.
