About 60% of Brazilian businesses 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 proper 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 results. 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 revenue.
“Brazil has enormous entrepreneurial potential, but many young people still face difficulties due to a lack of practical guidance. We need to talk about management, finances, marketing, and training more seriously. Having a good idea is not enough—you need 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
Constant updating is one of the pillars of success. Failing to train yourself can limit growth and make it harder to adapt to market changes. Participating in courses, events, and mentorship programs is a way to gain knowledge and make more strategic decisions.
2) Underestimating digital marketing
An online presence is considered essential. Ignoring visibility strategies on social media 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. “Innovation is vital to staying competitive,” emphasizes Conaje. Monitoring trends allows 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 make new investments unfeasible. Organizing cash flow and having clear revenue goals are basic but fundamental practices.
