This is the second year Endeavor, the organization that supports entrepreneurs in Brazil, released an index that lists cities that offer businesses the ingredients they need to grow. The ingredients were detailed in a comprehensive list of 55 key elements that are necessary for healthy expansion in spite of the recession that has crippled the country. The cities on the list have the right internal environment for businesses to open branches, expand or form partnerships.
The 55 indexes outline the strengths and challenges of each city. Each city was given a score based on their infrastructure, innovation, regulatory environment, and human capital as well as their access to capital. The five top cities are no surprise, according to Marcio Alaor the Vice-president and Director of BMG Bank.
The top city for businesses is São Paulo. More than 60 percent of the capital investments in Brazil are in São Paulo. Florianopolis and Victory came in second and third on the list followed by Recife and Campinas. Alaor said those cities have not been impacted as much as other cities by the recession because of the business and population growth they are experiencing. Alaor works with several businesses in the top five cities, and he believes the local governments have put policies in place that help businesses thrive during the tough times.
Marcio Alaor is familiar with the tough times. He grew up in Belo Horizonte. Marcio had to shine shoes at an early age to make ends meet. He was able to work his way through school and after graduation he decided that banking was his passion. He got a job with the Bank of Minas Gerais, and he worked his way through the ranks. Alaor was instrumental in helping local businesses get their start at the beginning of his career. He was named Vice-President of the family-owned bank, and he played a role in the expansion of the bank.
When Alaor first saw the index, he immediately reached out to the leaders of the top five cities and gave his support and the bank’s support in their quest to bring the country’s economic back from the brink of disaster. Alaor recently told a group of entrepreneurs that the Endeavor Index proves that Brazil is healing. Alaor believes 2016 will be the year Brazil begins an economic recovery.
The Brazilian government is on the verge of announcing a $15 billion to get the economy moving again. Businesses that are struggling will be able to get low-interest loans, and consumers will be able to borrow money at better interest rates, according to Mr. Alaor.