5 mistakes that can stall young entrepreneurs' growth; learn how to avoid them

Approximately 60% of Brazilian companies close before completing five years, according to IBGE. Among entrepreneurs aged 29 or younger, this rate tends to be even higher, especially when there is a lack of support, networks, and access to adequate training. According to Sebrae, the mortality rate among Individual Microentrepreneurs (MEIs) reaches 29% in the first five years, while for Microenterprises the rate is 21.6%.

On the other hand, a survey by Conaje (National Confederation of Young Entrepreneurs) indicates that involvement in support networks among entrepreneurs is associated with better outcomes. The entity brings together over 15,000 young entrepreneurs across 17 states. The study shows that affiliated companies grew, on average, 170% in revenue, generated more than 190,000 direct jobs, and totaled approximately R$ 51.7 billion in annual income. 

"Brazil has enormous entrepreneurial potential, but many young people still face difficulties due to a lack of practical guidance. It is necessary to discuss management, finances, marketing, and training more seriously. Having a good idea is not enough; it requires structure and preparation to bring it to life," says Fábio Saraiva, president of Conaje (National Confederation of Young Entrepreneurs).

Below, see what to avoid when starting or expanding a business, according to Conaje:

1) Not seeking training

Continuous learning is one of the pillars of success. Failing to acquire training can limit growth and hinder adaptation to market changes. Participating in courses, events, and mentorship programs is a way to build knowledge and make more strategic decisions.

2) Underestimating digital marketing

An online presence is considered essential. Ignoring visibility strategies on social networks can cause good products or services to go unnoticed. Investing in digital marketing is a competitive advantage that can attract and retain customers.

3) Disregarding networking

Connections with other entrepreneurs, suppliers, investors, and institutions can open doors and generate business opportunities. Neglecting relationships with others in the entrepreneurial ecosystem limits access to collaborations and strategic partnerships.

4) Ignoring market trends

Entrepreneurs who do not keep up with innovations and consumer behaviors risk losing relevance. "Innovating is vital to remaining competitive," emphasizes Conaje. Monitoring trends allows for anticipating movements and adapting the business model.

5) Lack of financial planning

Without financial control, it is difficult to sustain or expand a company. Conaje warns that the absence of planning can lead to debt, financial imbalance, and hinder new investments. Organizing cash flow and having clear revenue goals are basic yet fundamental practices.