Brazilian Entrepreneurs Blend Word of Mouth and Social Media to Drive Business Growth
Brazilian entrepreneurs strategically combine word of mouth and social media marketing amid challenges like high taxes, supported by training programs and local credit initiatives.
- • 58.7% of Brazilian entrepreneurs rely on word of mouth marketing; 52.5% utilize social media.
- • Challenges include high taxes (45.5%), credit access (33.6%), and bureaucratic hurdles (33%).
- • Sebrae provides free training in finance, marketing, and administration to new entrepreneurs.
- • Fundecam in Campos dos Goytacazes supports business formalization and credit access, approving over 1,500 credits in 2023, with a focus on women entrepreneurs.
Key details
In Brazil, a dynamic mix of traditional word of mouth and modern social media is fueling business growth among entrepreneurs. According to a Fundação Getúlio Vargas (FGV) survey involving 5,442 entrepreneurs, 58.7% rely on word of mouth for marketing, while 52.5% use social media platforms to promote their ventures, often combining both approaches effectively. These strategies are especially prevalent among small retailers and food service businesses that leverage technology, particularly mobile phones, to operate without physical storefronts.
However, challenges remain. Nearly 45.5% of entrepreneurs report that high taxes impede business growth, while 33.6% face difficulties accessing credit and 33% encounter bureaucratic obstacles. FGV researcher Rodolpho Tobler highlights that bureaucratic barriers can severely restrict business survival and success. To support entrepreneurs, Sebrae offers free training in finance, marketing, and administration, aiming to enhance their skills and improve success rates.
Meanwhile, local initiatives like Fundecam in Campos dos Goytacazes are making strides in formalizing businesses and providing financial support. In 2023, Fundecam approved over 1,500 credits at reduced interest rates, with 92% of these businesses formalized as micro or small enterprises. Fundecam President Orlando Portugal emphasizes the economic multiplier effect of these credits, which contribute to local job creation and income growth. More than half of the credit recipients are women, underscoring their growing leadership in the sector. These efforts align with Mayor Wladimir Garotinho’s strategic vision to bolster entrepreneurship as a cornerstone of economic development in the region.