Small and medium-sized companies account for the vast majority of businesses open in Brazil. According to data from MPE Data and Sebrae-SP, there are now 5.7 million micro and small enterprises in the country. This number constitutes about 99% of the national companies that correspond to 20% of the Gross Domestic Product – PIB and generate 60% of the vacancies of employment.

In such a vast market, it may be difficult to imagine that there is still room for many investments, but this idea is wrong. The reason there are so many SMBs is because they are extremely profitable and constantly expanding businesses.

The search for solutions that make life easier for people has been the focus of SMEs. In a world where needs accumulate, the market has become welcoming to these types of companies. But it is always necessary to conduct research and have effective management from the outset to develop a winning company.

Below we gather the best tips and information for you that you want to start your business or join an existing one.

Advantages of Small and Micro Enterprises

Advantages of Small and Micro Enterprises

There are several advantages to investing in an SME and they can vary greatly from one business line to another. However, we can cite as main benefits:

Differentiated tax regime;

In order to facilitate the payment of the high Brazilian tax burden, small and micro enterprises, taking into account the legal criteria, may opt for the differentiated tax regime – Simples Nacional, which includes the payment of most taxes in a unified form.

Reduced initial investment;

One of the biggest factors in starting your own business is getting the capital you need. The advantage of an SME is that it has a low initial investment in relation to large companies. There are big business cases that started out very small and you could be one of them.

Affordable bank loan plans;

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First of all it is necessary to remember that loans must be done with a lot of planning, to ensure that your company supports paying the plots if they remain strong in the market. The advantage is that SMEs have the ability to adhere to specific financing plans, with reduced interest rates and longer payment terms.

Flexibility to adapt to the market;

As they are smaller, SMEs have greater speed to respond to market variations and to present faster solutions to the problems faced. Your business should be volatile but keeping focus. Having agility is the greatest weapon of SMEs.

Look for innovative ideas

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To find the best line of business for your business, you’ll need to do a lot of research. Remember that innovation is the key to a well-accepted business in the market. Presenting solutions to customer problems should be your goal. And more than that, you should show customers that your solution is the best and that they really need it. Whether it is selling products or providing services you need to seek an identity in the market and to have a differential is something that is essential.

Analyze the risks

The investment risks vary depending on the industry you choose. It’s good to be attentive to market trends. Invest in saturated areas only in case you have a differential that highlights your company.

When investing in an SME you can plan your risks, just analyze the variants of the market and detail possible scenarios you may face. This is an effective way of not risking more than you can. But with planning, patience and a well-defined goal, you will surely be among the victors.

Believe in your intuition

Your intuition is very important. You must be the first to believe in your company. Successful businesses are those in which everyone strives for a common goal. This should be the spirit to be developed by your company when assembling your team. You need to be aware that you may face many difficulties, but it should contain the anxiety and persist in your project. For this you will need dedicated employees who want to grow together with the business.