Market insights: The view from Brazil

Brazilian interpreneurs rated the current climate for international expansion at 8.6 out of 10 on the positivity scale (higher than the global average), and 89% expect the overall environment for international business expansion to become more favourable over the next few years.

However, at the same time they were more inclined than the global average to think it is difficult for businesses to expand abroad today, with four in 10 (40%) saying so (versus 27% globally).

Access to digital technologies and innovation is a much bigger motivator for interpreneurialism here than elsewhere: 56% said this was a primary reason (compared to 40% globally), putting it second behind accessing market growth opportunities (64%).

Adopting advanced technology is seen as by far the most significant opportunity for overseas operations looking ahead, according to three quarters (75%) of respondents in Brazil. Meanwhile, they view forming strategic partnerships or joint ventures as much less important than elsewhere in the world.

Finding the right local partners was the biggest challenge Brazilian interpreneurs faced during the international expansion process (40% said so), followed by dealing with economic volatility (38%) and navigating global tax regulation (35%).

Once they had made the move, adapting company values to local norms and customs was the biggest hurdle to maintaining their organisation’s culture (according to 40%, compared to 30% globally).

The research confirms a reality I observe in the Brazilian market: there is growing confidence in international expansion, but also greater awareness of the complexity involved in execution. Optimism is strong, with 90% expecting a more favourable environment and 78% recognising the significant impact of AI. Even so, companies must not underestimate cultural adaptation, regulation, taxation, and the choice of local partners. For clients, the main expectation is to grow safely; the main concern is starting operations with an insufficient understanding of the market. In Brazil, internationalisation requires strategy, technology, and a real ability to adapt locally.

Tatiana Andrade
Partner,
KBW Auditores, Brazil