Study Reveals Credit Boosts Confidence and Financial Stability Among Brazilian Entrepreneurs
Research shows credit access improves financial stability and confidence among Brazilian entrepreneurs, with women benefiting notably; local market revitalization also boosts small business growth.
- • 56% of entrepreneurs achieve financial stability after receiving credit.
- • Women report greater improvements in financial management and reduced stress compared to men.
- • Mercado de São Brás revitalization leads to significant revenue growth for small businesses.
- • Estímulo combines credit with education and mentoring to support entrepreneurs.
Key details
A recent study conducted by 60 Decibels in partnership with the Estímulo fund highlights the transformative role of credit for entrepreneurs in Brazil, extending beyond financial support to include psychological and social benefits. The research, involving about 400 entrepreneurs with monthly revenues between R$30,000 and R$100,000, found that 56% of credit recipients achieved financial stability, while 32% reported improved quality of life and 37% experienced reduced financial stress. Furthermore, one-third of businesses that received loans met strategic growth goals such as operational expansion. Credit recipients showed greater optimism for their business future, with 46% noting significant improvement, contrasted with just 30% among non-recipients. Notably, women entrepreneurs reported even more positive outcomes, with 50% observing better financial management and less stress compared to 35% of men.
Lucas Conrado, director of Estímulo, emphasized the organization's commitment to providing accessible, sustainable credit alongside education, mentoring, and networking opportunities to support small business growth and economic development in Brazil.
In a related development, the revitalization of the Mercado de São Brás has created new opportunities for small entrepreneurs. For instance, artisan Luciana Tavares increased her revenue by 80-100% after opening a physical store catering to tourists, inspired by Amazonian culture. She expanded her workforce from one to four employees and credits her success to training at Sebrae. Similarly, entrepreneur Luizeane Rocha saw nearly a 100% profit increase after launching a physical location for her natural biocosmetics brand, enhancing visibility and reducing product loss.
These stories underscore how both access to credit and strategic business development initiatives can significantly enhance the confidence, financial stability, and growth prospects of Brazilian small entrepreneurs, especially women.