Sounding Off: Daniela Origem “6 Factors to Bear in Mind Before Doing Business in Brazil”
Brazil is becoming one of the world's superpowers and as their economy gains momentum the developed world is taking a strong interest as their own markets continue to struggle. However, companies and individuals should learn about the cultural variances before embarking on any transcontinental business. A few of the common mistakes and things to bear in mind in order to make business practice flow easier are listed in this article.
1. Brazilians are a more emotive society, it is important to be friendly and welcoming when meeting a new potential business partners. You should remember to take the time to ask them about how they are, how their family is. Go for a drinks, dinner and dancing with your clients, they will appreciate getting to know the real person they are doing business with and will feel comfortable when it come to making the deal.
2. Bureaucracy is far thicker in Brazil than it is traditionally in western countries, before doing business you should expect things like opening bank accounts or getting loans to take a little longer than you may have been planning. Patience is the key when dealing with this as getting frustrated and irritated with personal involved in the process usually only serves to further slow the process.
3. Employment law in Brazil currently favors the employee and as a result Brazilian companies are usually very wary before taking on new staff. If you are taking on local staff then be sure to ask for references and if you can check if they have had any previous legal issues with their previous employer.
4. The public sector traditionally pays substantially more than the private sector. The majority of individuals hope to work directly for the government with much higher average wages but also the protective employment law where public sector employees can only be laid off for extreme negligence. It is important to bear this public sector competition in mind in terms of employee expectations when they are working for you in the private sector.
5. The vast majority of Brazil's economy is built on products, due to the vast amounts of natural resources that the country processes. Potential investors should bear the under developed service sector in mind when starting business. Primary materials may be of abundance but educated staff with previous professional experience may be much harder to find than in the west. It may therefore be advisable to bring across an educated core infrastructure to start training of local start when initially starting businesses.
6. Communication in the correct tone and form of Portuguese is essential in order to gain trust within a Brazilian environment. it is essential to use the Portuguese from Brazil rather than European Portuguese which is less well received.
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