World Cup surpasses expectation by generating close to R$ 500 Million for 44,000 small Brazilian enterprises

07/07/2014 - 20:39

Marilia Cabral/Open Media Centre#A total of 43,910 Brazilian micro and small enterprises and individual micro entrepreneurs who participated in the “2014 Project” of the Brazilian Service of Support for Micro and Small Enterprises (Sebrae) launched in 2011 to help local businesses capitalize on the FIFA 2014 World Cup are expected to generate R$ 500 million in revenue, announced Sebrae President Luiz Barretto today at a press conference at the João Saldanha Open Media Centre in Rio de Janeiro.

“We had expected [small enterprises to generate] half a billion reais. That mark was surpassed this week and we will present the final balance after the World Cup. It is a success,” said Barretto, who added that Sebrae “scored a lot of goals” in the tournament and will continue to score after the event. “Small businesses won this challenge,” he said.

Sebrae worked with enterprises who wanted to capitalize on the opportunities presented by the 2014 World Cup to grow during the event and beyond. As an example, Barretto referenced a Rio-based supplier of building materials that, with Sebrae’s assistance, improved their business and earned certifications to provide ramps for the Maracanã stadium. The entrepreneur won several major construction contacts afterward.

» Brazil expects a R$ 30 billion economic boost from 2014 FIFA World Cup

From the group of enterprises who joined the project for the World Cup, more than 10,000 are still with Sebrae, in the pursuit of continuing education. With investments from Sebrae, which totaled R$ 90 million in three years, the project gave special focus to businesses in the 12 World Cup host cities.

"We emphasized the idea of ​​having a legacy; to prepare participating companies not only to profit during the Cup, but to be more competitive, to have a higher quality and for these companies to survive in the market that is increasingly competitive," said Barretto. "We are confident that these companies that were with us will be more competitive and will survive in the market," he added.

Small businesses will make a major contribution to the R$ 30 billion boost the World Cup is expected to bring to the Brazilian economy, according to a study by the Economic Research Institute Foundation (FIPE) commissioned by the Ministry of Tourism. FIPE's projections on the economic impact of the World Cup are based on a study conducted in 2013 on the economic impacts of the FIFA Confederations Cup Brazil 2013, which added R$ 9.7 billion to the Brazilian GDP. Based on this data, The World Cup is expected to inject three times as much into the Brazilian economy.

To calculate the revenue generated by small businesses, Sebrae, in partnership with Getúlio Vargas Foundation (FGV), mapped nearly 930 business opportunities in the World Cup host cities and determined the requirements companies needed to comply with to market their products.

The market sectors with the greatest development during the project were the construction, tourism and services sectors. Companies from other sectors, such as the creative economy, handicraft, woodwork and furniture, food production, information and communication technology, fashion (textiles and clothing, leather and footwear, gems and jewelry) and retail sectors, also joined the project.

Examples listed by Barretto included a company in Apucarana, Paraná, which leveraged the World Cup theme to make hats decorated with the tournament mascot; a merchant in Manaus who sold more than one ton of Tambaqui fish; and a food and beverage stall in Futuro Beach in Fortaleza, Ceará, that improved its business practices as a result of the World Cup.

In addition to training and capacity building initiatives, Sebrae also promoted handicraft showrooms in the host cities and set up stands in the Mosaico Brasil (Brazil Mosaic), a project designed to showcase accessories and items with the "Brazil look" to domestic and foreign tourists.

According to Sebrae, to achieve success in commercialization, small business owners learned that having adequate distribution channels is as important as having a product. Thus, the improvements to logistical distribution are one of the five legacies that the 2014 World Cup is leaving for small businesses in Brazil, in addition to management, sustainability practices, customer knowledge and new markets.

Source: Open Media Centre

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