About 60% of Brazilian businesses close before reaching five years of existence, according to the IBGE (Brazilian Institute of Geography and Statistics). 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 adequate 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 organization brings together more than 15,000 young entrepreneurs in 17 states. The study shows that affiliated companies grew revenue by an average of 170%, 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 take management, finance, marketing, and training more seriously. Having a good idea isn’t enough; you need the structure and preparation to get it off the ground.” 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. Failure to maintain training can limit growth and hinder adaptation to market changes. Participating in courses, events, and mentoring programs is a way to build your repertoire and make more strategic decisions.
2) Underestimating digital marketing
An online presence is considered essential. Ignoring social media visibility strategies can cause valuable 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 others in the entrepreneurial ecosystem limits access to collaborations and strategic partnerships.
4) Ignoring market trends
Entrepreneurs who fail to keep up with innovations and consumer behaviors risk losing relevance. “Innovation is vital to remain competitive,” emphasizes Conaje. Monitoring trends allows you to anticipate movements and adapt your business model.
5) Lack of financial planning
Without financial control, it’s difficult to sustain or expand a company. Conaje warns that a lack of planning can lead to debt, imbalanced accounts, and derail new investments. Organizing cash flow and setting clear revenue targets are basic but crucial practices.
