In its latest study about Brazil, consultancy firm McKinsey defined Brazil as a “country of entrepreneurs in the broader definition of the word,” after data showed that make up 39 percent of the Brazilian workforce. However, it doesn’t mean that Latin America’s largest economy provides a friendly environment for people starting their own businesses. From the high burden of bureaucracy to elevated taxes, several factors contribute the low survival rate of new businesses.
According to the data, released by the Brazil Digital Report, two-thirds of Brazilian companies close before their fifth birthday. The top reasons being the lack of clients, lack of capital, and lack of knowledge.