Brazilian Micro and Small Companies Support Agency

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1 Brazilian Micro and Small Companies Support Agency IRC Division de Nova Minas Gerais Serrana - Brazil

2 Sebrae Sebrae is a civil, private, non-profit institution focused on the development of micro and small sized businesses in Brazil. Sebrae s purpose is to provide businessmen with all required knowledge and skills for a successful performance in the economic and social scenarios. (established in 1972)

3 Sebrae Mission: Promote competitiveness and sustainable development of micro and small enterprises and foster entrepreneurship. Vision: Being recognized as a reference institution in the country in solutions for the management of SMEs and entrepreneurship.

4 Sebrae SEBRAE is organized as a SYSTEM, composed of a central controlling unit plus 28 linked units located at the 27 Federal States and the Federal District, with administrative authonomy but, respecting the national guidance (central unit).

5 Background 4.9 million small businesses account for: 97.7% of the businesses in Brazil; 40.8% of the employees on business; 27.2% of the paid salaries; 66.8% of the industrial export enterprises; 2.7% of the total exported;

6 General Data on Brazil Population Area Demographic Density Money GDP GDP per capita GDP Growth Exports Imports km² 23,34 inhab/km² Real USD 1 trillion (2008 st.) USD 5.100,00 (2008 st.) 5.1% (2008 st.) USD bilion (2008 st.) USD bilhões (2008 st.) Most Relevant Cities São Paulo, Rio de Janeiro, Belo Horizonte, Fortealeza e Salvador

7 Background Sebrae is the main institution operating cluster initiatives in Brazil; (industry, agribusiness and services) No specific national governmental policies for clusters; No governmental agencies focused on cluster development; Sebrae is composed by a complex partner institutions network (council board)

8 Sebrae - Strategic Map Focus on Competitiveness and Sustainability Meaning of Competitiveness: Consolidation and increase of market share for the companies supported by Sebrae; Meaning of Sustainability: being competitive in the long term. (triple bottom line)

9 Sebrae - Approach 191 projects distributed in approximately 25 sectors 143 Collective (Cluster) companies 48 Individual people/companies Industry; Agribusiness; Trade and Services,tourism and handicraft.

10 Cluster Approach - The click The click for competitiveness cluster-based projects 3 pilars: The new board of directors (leadership); The emphasis put on collective projects (clusters); The low level of macro-economic impact - inexpressive results, difficulty to coordinate demands X needs and to measure results. Obs.: Sebrae has been financing some clusters for over 10 years budget: USD 55 million (MG)

11 The Goal To position the institution as a Teaser Development Agent for the clusters feeding them with specific knowledge, inducing strategic thought and helping them to connect to the world. (To become a Knowledge Organisation)

12 The Change Short time solutions delivery (we implement with the companies) X Long term strategic intervention (we help create the approppriate environment)

13 The challenges To find experiences going on around the world and understand what were the approaches used; Willingness to transfer knowledge and best practices To learn from successfull stories; To talk employees and partner institution into the change and into the idea of betting on the long term strategy; To have a skilled team; To overcome the inertia;

14 The needs To empower and shape the team on: skills, a theoretical basis - Porter`s diamond; To have our own methodological approach; To manage the knowledge and intelligence generated; To establish an international knowledge network; (The Competitiveness Consulting Group)

15 Lessons learned In order to learn people have to implement - it takes experience to deal with the cluster as a system and to develop strategic thought; It is more complex to gather people and make them have a common vision of the cluster than we thought; An assertive intervention depends on a lot of primary market research - trends and buyers criteria - and it takes skilled and engaged people and investment; Focusing on business segmentation instead of sectors makes much more sense and reaches more effective results; Building an international network is a central part of the project deveolpment; One must manage properly the knowledge generated in the process.

Matheus Cotta de Carvalho Operations Director matheus.carvalho@sebraemg.com.

16 Matheus Cotta de Carvalho Operations Director Lina Volpini Market Access and International Affairs Manager THANK YOU!

Belo Horizonte and Rio de Janeiro, October 15th 2015

Belo Horizonte and Rio de Janeiro, October 15th 2015 Minas Gerais: a large and important state 226,000 square miles (Larger than France or Spain) 20 million people (Comparable to Australia) 2 nd largest