A survey conducted in 2023 by Sebrae found that Brazil and, therefore, Brazilians are among the peoples who most seek to undertake. We occupy the 8th position in the global ranking of entrepreneurs, with 30.1% of the adult population involved in the business world. In 2024, according to another GEM study, this number rose to 33.4%, representing one-third of our population. These data show that the growing desire and attempt to undertake among Brazilians is remarkable. However, many end up taking actions without guidance, which negatively impacts the growth and financial sustainability of these companies.
Although it is interesting to reflect on the reasons why this number is so high in Brazil, we need to strengthen our focus on analyzing the mortality rate within the sector. In a study conducted by IBGE in 2022, for example, 60% of companies in Brazil do not survive after five years of activity. A very alarming fact for everyone looking to start their businesses: despite Brazilians having a very strong entrepreneurial spirit, many are disappointed with the results and have no choice but to declare the business bankrupt. But why does this happen?
According to another study conducted by Sebrae, based on data from the RFB and field research carried out between 2018 and 2021, the three main factors that cause business failure are: lack of personal preparation, poor business planning, and poor business management.
On one hand, Brazilians seek to undertake, and this should be praised. However, creating ventures without proper planning and personal preparation mostly results in money being wasted.
Analyzing most companies from a marketing perspective, many lack a differentiator, and it is necessary to understand that having one or several differentiators is currently essential to even start on this "entrepreneurial highway."
To illustrate, imagine that a potential customer is looking for a shirt. Between two companies, one of them has differentiators in its values, payment methods, and even in actions aimed at the environment. Conversely, the second company was recently created, has no differentiators, and moreover, offers stricter payment methods than the competitor. It is evident that the end consumer will definitely choose the first option.
Brands that do not have differentiators will be treated as commodities. They are just different places selling the same "rice and beans," without a competitive advantage, without attractions. 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 consider factors such as price and personal values when making their product choices.
In Generation Z (Gen Z), born from 1995 onwards, brand infidelity reaches 65%, according to the survey. It can be inferred from this research that Brazilians, especially from this generation, will seek out brands that align with their values, potentially stopping shopping at large chains to support a small business that offers interesting differentiators in the eyes of the consumer.
This scenario shows that if you do not have differentiators, potential customers will stop buying from your business and go to the competitor who has these points of individualization. Today’s market has become complex, and as a result, brands that think of selling products as commodities will not be able to thrive.
While some sell a sneaker, others sell a Nike running shoe, in a chain of stores committed to sustainability, charitable actions, and social responsibility, focusing on customer experience, valuing human values, digital engagement with purpose, etc. Everything will depend on how you position yourself and differentiate from those who do the same as your business.
