Public Sector Efficiency and Local Support Boost Brazil’s Business Environment

During the Milken Institute’s Global Dialogues event on October 9, André Street, founder of Stone, emphasized the critical need to enhance Brazil’s business environment by improving public sector efficiency. He highlighted public safety, responsible public finances, and efficient government services—potentially through artificial intelligence (AI)—as key areas that could unlock investment potential in Brazil. Street pointed out that Brazil’s high real interest rates (currently 13.75%) and elevated operational costs present significant barriers for investors.

Street also called for credible economic direction and stronger institutions, underscoring Brazil’s large population, creative talent, and diverse economy as promising long-term opportunities. He praised the Central Bank for its effective and independent financial sector role, contributing to Brazil’s advanced fintech landscape.

Complementing this national perspective, São Bernardo has taken concrete steps to support smaller businesses with a cooperation agreement signed on October 9 between the municipality and Sebrae-SP. This initiative aims to simplify business creation and strengthen local micro and small enterprises through ongoing support in finance, sales, and strategic planning at no cost. Since 2025, over 23,000 consultations have assisted local entrepreneurs, with 22,330 new business registrations in São Bernardo during the first nine months of 2026.

The city's 'Sala do Empreendedor' earned the prestigious Selo Ouro for service excellence, making São Bernardo the only municipality in the Grande ABC region to receive this recognition. Training programs include international methodologies like the Empretec seminar developed by the UN, alongside courses focusing on digital marketing and inventory management.

These coordinated efforts at both the national and local levels demonstrate how improving public sector efficiency, adopting AI, and providing hands-on support to small businesses can positively impact Brazil’s entrepreneurial environment. According to Mayor Marcelo Lima, government assistance is essential for generating direct employment and creating business opportunities, fostering sustainable neighborhood economies.

Together, these developments signal a strategic approach to overcoming Brazil’s historical challenges such as public safety concerns and fiscal hurdles, positioning the country for enhanced investment and entrepreneurial growth.