About 60% of Brazilian companies close before reaching five years, according to IBGE. Among entrepreneurs up to 29 years old, this rate tends to be even higher, especially when there is a lack of support, 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 among 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 in 17 states. The study indicates that affiliated companies grew, on average, 170% in revenue, generated over 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 lack of practical guidance. It is necessary to talk about management, finance, marketing, and training more seriously. Having a good idea is not enough; you need structure and preparation to turn it into reality.Fábio Saraiva, president of Conaje (National Confederation of Young Entrepreneurs), affirms.
Next, see what to avoid when starting or expanding a business, according to Conaje:
1) Do not seek training
Constant updating is one of the pillars of success. Failing to upgrade one's skills can limit growth and hinder adaptation to market changes. Participating in courses, events, and mentoring programs is a way to acquire repertoire and make more strategic decisions.
2) Underestimate digital marketing
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) Disregard networking
Connections with other entrepreneurs, suppliers, investors, and institutions can open doors and generate business opportunities. Neglecting relationships with other people in the entrepreneurial ecosystem limits access to collaborations and strategic partnerships.
4) Ignore market trends
Entrepreneurs who do not keep up with innovations and consumer behaviors risk losing relevance. "Innovation is vital to stay competitive," highlights 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 lack of planning can lead to debt, account imbalance, and make new investments unfeasible. Organizing cash flow and having clear revenue goals are basic but fundamental practices.
