Entrepreneurship and Small Businesses in Brazil: Essay Sample

Small businesses have become a major source of employment across the world. Due to their size, people engage in a wide form of activities such as production, distribution, and much more. Like most countries, Brazil is one of the nations with a high number of small businesses (Dias and Davila Jr, 2018). Therefore, people are forced to focus on other activities to enhance their business performance. For instance, due to the low supply of electricity across the country, some individuals have opened small businesses that supply solar panels to ensure a large number of people can effectively access power (de Oliveira et al., 2018). The approach has created new opportunities for the establishment of small industries. Therefore, small businesses have a great role in the development of the country's economy as they contribute a lot in revenue generation (Greene, 2009). Despite the effort, most small businesses experience financial challenges. As such, it has become difficult for some people to put ideas into action. Due to the approach, financial support is a critical aspect that the government should focus on (de Oliveira et al., 2018). Therefore, the establishment of financial support policies for small businesses and entrepreneurship would be a crucial step toward the improvement of the current state in Brazil. The paper reviews how the application of financial support policy may influence the performance of small businesses in Brazil.

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Provision of Grants

The establishment of financial support policy would aim at giving small business grants, which would assist them in engaging in a wide form of activities. In this case, the grant will be directed to the small business with the goal of providing financial support (Greene, 2009). For a business to qualify for the grant, they will be required to demonstrate their capability to utilize finance in all aspects of the organization. Through this non-payable financial support, small businesses will be given the opportunity to engage in a wide form of activities, which will form the based for industrial growth (Greene, 2009). Through the approach, small traders will be willing to take more risks as they try to find the best ways to enhance business performance. Normally, entrepreneurs are individuals who take wide forms of risks (de Oliveira et al., 2018). Therefore, offering financial support would assist them to think and put the idea in actions as they try the best way to improve their business (Greene, 2009). Through the tactic, grants would open new opportunities for small businesses to engage in activities such as manufacturing, distribution, and much more, thus increasing the overall performance (Dias and Davila Jr., 2018). Additionally, the grant will provide small businesses with the chance to introduce modern systems, which have become a major aspect of economic growth. According to Dias and Davila Jr. (2018), most small businesses in Brazil rely on traditional systems, which hinder their ability to engage in a wide form of activities. Hence, the establishment of a grant would assist small businesses to introduce modern systems, thus improving the overall performance.

Financing Training Program

Most people across Brazil who run small businesses have litter skills about how activities are supposed to be conducted. Therefore, financing training programs will provide an opportunity for entrepreneurs to acquire more skills and knowledge about their businesses. Normally, training helps in addressing weaknesses that most small business traders experience (Blackburn and Ram, 2006). The approach forms a base that strengthening their skills, thus improving how they conduct activities. According to de Oliveira et al. (2018), the establishment of a training program impacts traders to understand how to structure their small businesses, which is a critical aspect in enhancing their consistency. Hence, training provides small traders with the skills on how to administer their activities, thus developing ways on how to improve performance (Blackburn and Ram, 2006). Additionally, training equips small traders with the confidence and skills on how to evaluate particular activities, thus minimizing the chances of businesses running at a loss (de Oliveira et al., 2018). For training programs to be attained, the government of Brazil needs to set capital. Most of the training requires huge capital as they require practical skills (Dias and Davila Jr, 2018). For instance, when demonstrating how small traders may use particular systems to produce goods, the government may be required to engage real practical, and this requires huge capital (Greene, 2009). Therefore, the establishment of financial support policy will ensure the government allocates particular capital to training each year, thus enhancing the performance of small scale traders across the country.

Research and Development

Most business across Brazil relies on traditional systems of conducting commerce. The approach has been affected by a lack of a better understanding of what is happening across the world. Therefore, the establishment of research programs will be a critical aspect the government may use to assist small businesses across the country (Pang, 2018). Through research, the government will manage to inform people about the most performing businesses across the world (Pang, 2018). Additionally, the research will open up ways that small businesses may use to sell their products across the world (Blackburn and Ram, 2006). For research and development to be attained, the government needs to set particular cash, which will be used to support organizations that are conducting studies. According to de Oliveira et al. (2018), about 80 percent of the projects that fail are associated with a lack of financial support. Therefore, supporting small businesses to conduct their research will assist them in understanding the systems that best fit their ability (Dias and Davila Jr, 2018). For instance, the establishment of research programs will assist small traders to comprehend aspects such as solar panels, which have become major sources of energy across the world. Thus, in regions, especially rural areas, where power supply is less, small traders can effectively use solar power to facilitate their activities (Pang, 2018). The approach may promote small scale traders to engage in manufacturing, thus improving the sector, and also increase the income rate (de Oliveira et al., 2018). For instance, the application of technology has assisted some traders in engaging in bottled water, thus increasing their income rate (Greene, 2009). Hence, financial support policy could be an essential approach that facilitates traders to engage in research.

Balancing Quality and Growth

In business, quality is a key aspect that influences the growth rate. Most small businesses in Brazil are associated with low-quality products, which is triggered by a lack of capital to purchase high standard goods (Pang, 2018). Due to the issue of quality maintenance, most businesses experience growth challenges as customers tend to purchase their products in an already established corporation (Ellitan, 2017). Lack of finances has been highlighted as a key aspect that affects small businesses from maintaining a high quality of products. Therefore, the establishment of financial support policy would be a major boost to small businesses. As such, entrepreneurs would be given a chance to support their business financially, thus maintaining high-quality products, which form the base of growth (Ellitan, 2017). Additionally, the establishment of financial support would assist businesses in accessing up to factories, where quality products are produced (David and Francis, 2010). The approach would create a good relationship between customers and small businesses, thus boosting their growth rate.

Access to Loan

Lack of access to a loan in Brazil has been a critical aspect that affects the growth of small businesses. For a business to access the loan, they are required to provide a lot of data regarding their performance (David and Francis, 2010). Normally, most financial institutions require businesses to provide their registration documents (Pang, 2018). However, a lack of understanding about how to register businesses hinder small investors from access the loan. Therefore, financial support policy should aim at reducing the documentation required for small businesses to access the loan (Ellitan, 2017). Through the approach, many businesses could effectively access loans, which will impact their growth (Greene, 2009). Accessibility to a loan will allow small businesses to expand their operation, especially through the introduction of modern equipment (Pang, 2018). As such, the loan gives small businesses an opportunity to buy or lease equipment, thus increasing productivity (Ellitan, 2017). The approach will give small businesses an opportunity to engage in a wide form of activities, thus provide more products. The approach provides consumers with a chance to select products that best fit their needs.

Additionally, access to loans will allow small businesses to increase their working capital, thus improving their capability to conduct day to day activities (Blackburn and Ram, 2006). The introduction of financial support policy will assist small businesses to improve their operational systems as they can effectively hire skilled individuals (Ellitan, 2017). Normally, most small investors across Brazil rely on labor support from their family or friends as they cannot manage to hire personnel (David and Francis, 2010). However, the introduction of loans would assist these investors in hiring experts, thus improving operational and other performance within the business (Pang, 2018). Furthermore, the improvement of loan accessibility would improve the flexibility of small businesses, thus enjoying numerous opportunities that occur in the market (Ellitan, 2017). For instance, easier access to loans would assist a small business to shift its production, thus enjoying high profit within a particular field.

Constant Pressure

Due to a lack of management challenges, the founders of the small businesses experience constant pressure that mostly occurs, especially when they engage in bad decisions. Through financial support, the businesses will be in a position to hire managers, thus improving structural performance (Pang, 2018). Being overwhelmed by activities impact the owner to make inappropriate decisions, thus subjecting the business to poor management (Ellitan, 2017). Therefore, accessing loans would increase the financial level of a business, and hence, it is easier for the order to hire external experts who assist in conducting managerial roles. In this case, financial support policy could be a major boost in the management of a business (Pang, 2018). Normally, money management is a critical aspect that influences the success of a business (Blackburn and Ram, 2006). Most small businesses experience the challenge of hiring a manager as they think the cost is too high (David and Francis, 2010). However, having the capability to access financial assistance could allow them to engage managers, thus investing more, which assists in increasing their income rate.

Moreover, managers could assist small businesses to engage in activities such as online selling, which has become a major marketing area (Greene, 2009). Due to advancements in technology, online marketing has become a crucial area where businesses can effectively sell their products (Pang, 2018). Therefore, small businesses across Brazil could acquire a need way of selling products, thus increasing marketing performance, which forms the base for its growth (Ellitan, 2017).