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

Around 60% of Brazilian companies close before reaching five years of age, according to IBGE. Among entrepreneurs aged 29 and under, this rate tends to be even higher, especially where there's a lack of support, networks, and access to appropriate training. According to Sebrae, the mortality rate among Individual Micro-entrepreneurs (MEIs) reaches 29% in the first five years, while the rate among Micro-enterprises 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 organisation brings together over 15,000 young entrepreneurs across 17 states. The study shows that affiliated businesses saw an average 170% increase in revenue, generated over 190,000 direct jobs, and totalled approximately R$ 51.7 billion in annual revenue. 

Brazil has huge entrepreneurial potential, but many young people still face difficulties due to a lack of practical guidance. We need to talk seriously about management, finance, marketing, and skills development. A good idea isn't enough; structure and preparation are needed to turn it into a reality. "States Fábio Saraiva, President of Conaje (National Confederation of Young Entrepreneurs)."

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

1) Not seeking training

Constant upskilling is a cornerstone of success. Failing to develop your skills can limit growth and make adapting to market changes difficult. Attending courses, events, and mentorship programs is a way to acquire a broader range of knowledge and make more strategic decisions.

2) Underestimating digital marketing

Online presence is considered essential. Ignoring visibility strategies on social media can cause good products or services to be overlooked. Investing in digital marketing is a competitive advantage that can attract and retain customers.

3) Neglect networking

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

4) Ignoring market trends

Business leaders who don't keep pace with innovation and consumer behaviours risk becoming irrelevant. "Innovation is vital for maintaining competitiveness," stresses Conaje. Monitoring trends allows for anticipating movements and adapting business models.

5) Lack of financial planning

Without financial control, it's difficult to sustain or expand a business. Conaje warns that a lack of planning can lead to debt, imbalances in accounts, and make new investments impossible. Organising cash flow and having clear sales targets are basic but essential practices.