In June 2024, 338.8 thousand new small businesses were created in Brazil according to analysis made by Sebrae, based on data from the Federal Revenue Service. These companies represent 96.2% of the total of 352.1 thousand registered in the month, showing an increase of 4% compared to the same period of 2023. In the first half, the country reached the mark of 2.1 million new small businesses, reinforcing the relevance of tactics such as networking and prospecting for the growth of these ventures.
For Juliano Dias, CEO of Meetz, a startup specialized in prospecting solutions and sales engagement for B2B businesses, the growth of small businesses in Brazil does not happen by chance.“O Brazil is a country of great adaptability in the entrepreneurship aspect, and the Brazilian receptivity with micro-entrepreneurs is very favorable for the sector.” The executive also highlights, that, “at the beginning of a startup, the indication and networking are essential to win the first customers, and it is from these connections that the first businesses happen.”
According to Meetz data, businesses originating from networking have a conversion rate of 30.23%, highlighting the importance of building strong relationships for business growth. “These numbers show how human connections are not just a social activity, but a critical component for sustainable growth of the” business, highlights Juliano Dias. This virtuous cycle of referrals, although effective, can present limitations as the company grows.
The scalability challenge
Despite the initial success driven by networking, Juliano warns that this strategy can reach a saturation point if it is not complemented by structured prospecting processes.“It is common for startups to reach a ceiling, where networking, by itself, no longer sustains the pace of growth. The lack of predictability can stifle the business”, notes the CEO.
Juliano emphasizes the importance of adopting practices that ensure recurring revenue and predictability of new opportunities. “When developing a more structured prospecting process, we can predict how many meetings will be held and how many deals will be closed. Unlike networking, prospecting generates a stability that allows us to leverage the growth of the company more steadily.”
The importance of long-term planning and partnerships
In addition to strengthening networking, face-to-face meetings are valuable opportunities to create lasting partnerships.“Conversion time is generally lower when a client comes by referral or networking. Trust in the relationship facilitates the closing of new businesses”, says Juliano Harvard Business Review they corroborate this view, pointing out that networking preparation and investment can increase the likelihood of connecting with investors, recruiting talent and identifying opportunities.
The growth scenario of small businesses in 2024 reflects the importance of planning and adopting efficient prospecting strategies. “We are seeing a heated market, and it is essential that small entrepreneurs know how to use networking and prospecting tools to stand out”, concludes Juliano Dias. “Companies that can structure their operations with predictability and consistency are those that become major players in the market.”
