Competitive Challenges of Small Enterprises Carlos Alberto dos Santos Director of SEBRAE Brazilian Micro and Small Business Support Service Micro and Small Business in Brazil 5,6 million of enterprises (99%) and 10 million of informal ones 52,4% Urban formal workers 39,7% of total wages 3,2 million in Simples Nacional * (special tax treatment) 17% of fiscal revenue 14.500 exporting SME * Jan 2009 Sebrae’s Mission • To promote competitiveness and sustainable development of micro and small enterprises and stimulate entrepreneurship Challenges • Globalization – necessity to adopt international competitive patterns • Global competition in its own domestic market • Gaps in management, access to knowledge, services, credit and markets Public Policy General Law of Micro and Small Enterprises (CL 123/06) Individual Entrepreneur (CL 128/08) The Law will allow formalization of around 10 million informal entrepreneurs SEBRAE and the Industrial Sector 20 segments receive custumized attention (biotechnology, constrution, cosmetics, leather and footwear, wood and furniture, oil and gas) 465 projects 75,2 mil clients Total investments: R$ 556.6 million (R$ 276.2 million from partner institutions) Projects on Business Linkages • Vínculos Empresariais – SEBRAE/GTZ/UNCTAD/Líderes Empresariais (Brazilian NGO) • Competitive Insertion of SME in the Productive Chain of Petrol & Gas – SEBRAE/PETROBRAS Vínculos SEBRAE/GTZ/UNCTAD/Forum de Líderes Empresariais • Insertion of SME in a globalized economic context, involving coordinated activities among support institutions, large enterprises and local suppliers (SME) Vínculos Total of 235 Brazilian Local Suppliers (SME) • State of Ceará 45 Local Suppliers (SME) Large Firms: Gerdau, Durametal, Queiroz Galvão, Esmaltec, Sangati Berga, FAE and Cemec • State of Pernambuco 60 Local Suppliers (SME) Large firms: Gerdau, Alcoa, Atlânticosul, Copergás and Philips • State of Bahia 130 Local Suppliers (MPE) Large firms: Bosch, Gerdau, Deten, Veracel, Suzano, Cristal, Millennium, Aracruz, El Paso and Nestlê Local Suppliers from sectors of transportation, general services, mechanics, wood and furniture, electric engineering and industrial painting. Oil & Gas SEBRAE/PETROBRAS • Objective: to promote higher standards of SME competitiviness by their insertion in the oil & gas productive chain • 2.300 SME, 180 large enterprises, 21 Petrobras local branches • The project results in significant positive impact on development standards of the benefited areas Business Linkages and SME SEBRAE/PETROBRAS Project Project Financial Resources Participants • 2.300 SME • Business Round-Tables • Petrobras – 50% 2005 – 8 events • SEBRAE – 50% R$ 119,4 mi (estimated value) • National Agreement – R$ 32 milion 2006 – 10 events R$ 471 mi (estimated value) 12 states 2007 – 6 events R$ 854 mi (estimated value) Carlos Alberto dos Santos [email protected] Director of SEBRAE Brazilian Micro and Small Business Support Service www.sebrae.com.br