ENTERPRISE SURVEYS                                                                                                                                                                                               63663
                   COUNTRY NOTE SERIES

                                                                                                                                                                                                                        BRAZIL

                   Running a Business in Brazil
2011
12




                                                                                                                                                      What is the average firm in Brazil?
NOTE NO.
COUNTRY




                                                 Brazilian firms are the most integrated into the financial system in the Latin America Region

                                                                                                             Percent of firms using banks for investment
WORLD BANK GROUP




                                                                                                                 and savings or checking accounts
                              100            LAC regional average - checking/savings acounts


                               80
                    Percent




                               60


                               40
                                             LAC regional average - external financing

                               20


                                0
                                    Mexico




                                                   Nicaragua




                                                                 Paraguay




                                                                                      Guatemala




                                                                                                   Uruguay




                                                                                                                   Honduras




                                                                                                                              Bolivia




                                                                                                                                        El Salvador




                                                                                                                                                           Colombia




                                                                                                                                                                        Chile




                                                                                                                                                                                     Peru




                                                                                                                                                                                                  Ecuador




                                                                                                                                                                                                            Argentina




                                                                                                                                                                                                                        Venezuela




                                                                                                                                                                                                                                     Panama




                                                                                                                                                                                                                                              Brazil




                                                                            Percent of firms using banks to finance investments                       Percent of firms with savings or checking accounts



                   Source: Enterprise Surveys.
                   Characteristics of
                   the firms interviewed
                                                          Sector
                                                                Retail
                                                                 5%
                                                                      Other
                                                                     Services
                                                                       13%




                    Size
                                                     Manufacturing
                                                         82%

                                Large
                          (100+ employees)
                                 21%
          Medium
     (20-99 employees)
            41%

                           Small
                                                       Location
                     (5-19 employees)
                            38%
                                                    Central                          North
                                                               Northeast
                                                     West                             3%
                                                                 14%
                                             Paraná 10%
                                               9%

                                        Rio Grande
                                           do Sul                        São Paulo
                                            11%                            24%
                                              Santa
                                             Catarina
                                               10% Minas        Rio de
                                                      Gerais   Janeiro
                                                       10%       9%                          How do businesses operate in Brazil?

Source: Enterprise Surveys.



                         How does Brazil 2009 compare with Latin America and the Caribbean?




Source: Enterprise Surveys.
Note: This table presents a ranking out of 16 economies for each of the listed indicators. The numbers are ranks as opposed to
the actual value of the indicator.


 2
                 The average firm in Brazil 2009




Source: Enterprise Surveys.




                 Choices by the average firm in Brazil 2009




Source: Enterprise Surveys.


                                                             3
                                                                                                             What constrains firms in Brazil?




                                  Collateral requirements are higher                                                                          Number of days to clear customs
                                  in Minas Gerais                                                                                             is the highest in Minas Gerais
                                 Value of collateral needed for a loan (percentage)                                                       Average time to clear direct exports through customs (days)
                                                                                                                         30
           140
           120                                                                                                           25
           100                                                                                                           20
     Percent




                                                                                                               Percent




               80
                                                                                                                         15
               60
                                                                                                                         10
               40
               20                                                                                                         5
               0                                                                                                          0
                    Central -   Paraná   Northeast   North   Rio de      Rio      São     Santa     Minas
                                                                                                                              Northeast    Rio Grande   Paraná    Santa     Central   Sao Paulo    Rio de   Minas
                     West                                    Janeiro   Grande    Paulo   Catarina   Gerais
                                                                                                                                             do Sul              Catarina    West                 Janeiro   Gerais
                                                                        do Sul




Source: Enterprise Surveys.                                                                                  Source: Enterprise Surveys.


 4
                                                      How has the business environment changed
                                                      over the past five years?




                Constraints on the average firm in Brazil 2009




Source: Enterprise Surveys.


                                                                                                 5
                             Percentage of firms that pay
                             for security

               100   Brazilian firms’ concerns about security increase with size
                90                                                                   Notes
                80
                70
                60
     Percent




                50
                40
                30
                20
                10
                 0
                     Total             Small            Medium               Large




Source: Enterprise Surveys.




 6