Industry: see greater difficulties when exporting – 02/06/2023 – Market

The main obstacles for micro and small Brazilian industries to be able to export products and services are the burden of taxes, lack of infrastructure, credit and labor training, in addition to logistical problems.

According to a Datafolha survey in partnership with Simpi (Union of Micro and Small Industry of the State of São Paulo), 30% of micro and small companies in the field would like to become exporters, but only 2% of them sell products or provide services to other countries .

In total, 65% of respondents consider Brazilian industries less competitive than competitors from other industrialized countries and 19% say that competition is on an equal footing.

Joseph Couri, president of Simpi, says that public policies to encourage the industrial sector are not aimed at understanding the needs of micro and small industries in terms of tax, infrastructure and market issues.

“There are policies aimed at Brazilian industry, but they are not focused on micro and small, but on medium-sized industries and upwards, this in all areas, ranging from incentives to reducing bureaucracy”, he said.

Respondents stated that the biggest advantage of foreign industries compared to Brazilian ones is the cost involved in the industrial production, followed by government support and technological innovation.

For industries of this size, 15% consider the tax burden and lack of infrastructure the greatest difficulty in operating outside Brazil, followed by lack of credit and financing, with 14%.

“First, the policies that are in place are not reaching the end of [no caso, nas micro e pequenas indústrias], there are credit policies to encourage. However, this is not enough for businessmen who are not able to fit into these policies”, said Couri.

Lack of labor training (12%), low competitiveness and exchange rate (5%), lack of innovation and technology (4%), international barriers (4%) also hinder the sector, according to the survey.

Among the factors that affect export capacity are the operational cost necessary to take the product to the country of interest, says Couri.

“Export-oriented logistics does not depend only on public policies, but also on negotiations with companies and organizations [de fora do país] and the target market that really has backing in financial operations, such as a letter of credit to guarantee support to the Brazilian exporter”, says the president of Simpi.