Recent research by Forbes It showed that the number of immigrant entrepreneurs was lowest in recent years thanks to immigration policies, but this was not an obstacle for Brazilian companies to seek internationalization as an alternative to the slow economic recovery that Brazil is experiencing.
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This immigration setback prompted Joe Biden to review immigration protocols in order to create incentives for investors in the country, but the high cost, given the current exchange rate, was one of the business’s biggest challenges.
One of the proposals to attract new investors is the United States has launched the possibility of obtaining an EB-5 visa, which offers a temporary green card to investors, spouses and children under the age of 21, but despite this advantage, there are other challenges to overcome.
“Despite the incentive, the process is very bureaucratic, expensive and time-consuming,” says Rafael Cortez, one of the owners of Hyped Angels, a fashion company that tried to stay in the US and was denied a visa. The company that sells designer brands has been forced to return to Brazil after the fallout from its residency, where it faced an even greater challenge: Brazilian taxation of the luxury import trade.
This same experience of visa refusal occurred with Sendbird, founded by John S. Kim, which, despite moving millions of dollars and generating 800,000 jobs, was denied a green card application.
With the proposal of the US President providing the possibility of obtaining an EB-5 visa, the investor must provide at least 500,000 US dollars, which reflects more than 2 million Brazilian reals, which is beyond the reach of the young. Entrepreneurs aiming to internationalize companies, either through a tax proposal or strategic positioning.
According to Department of State (MRS) data, about 45% of entrepreneurs who have internationalized their businesses are in the United States. Data was collected in May 2021. Even as budget requirements rise, given the exchange rate for converting riyals into dollars, there are other challenges to overcome.
Raphael emphasizes: “This value directly affects the small entrepreneur, since a significant part of domestic jobs in the United States come from foreign companies, as well as moving the production chain across the country.” The New Jersey-based company attempted to immigrate to Florida, given the high growth in the area just before the visa was refused. According to the founder of Hyped Angels, the biggest challenge for an entrepreneur is to overcome the bureaucracy imposed primarily in the United States.
According to the semi-annual report of the US State Watch by BMO Economics, Florida delivered 3.2% growth in real GDP, keeping the state in the lead in development, concentrating the largest community of Brazilians outside the country, the main choice for Brazilian entrepreneurs seeking to internationalize their companies.
Among the factors favoring Florida’s weather is the ease of access to Brazil due to the number of direct flights and the Brazilian community in the area, explained the Florida Department of Economic Opportunities, which advises companies that want it. internationalization.
Raphael says that once the bureaucratic aspects are overcome, the entrepreneur needs to adapt to tax rates and legislation and strictly adhere to the protocols for opening a business and bank account.
In other countries such as the United Kingdom, thanks to the turmoil in European trade relations after Brexit, Brazilian entrepreneurs are beginning to receive a lot of response, and they are starting a race to attract companies that boost the economy such as UK Department of International TradeIt is a program to support and encourage the development of Brazilian companies in the country.
There are other incentive programs such as Santander want Which helps free entrepreneurs in their search for internationalization in networks, groups and ideas.
“An entrepreneur seeking internationalization must be aware of the risks, the necessary adjustments and any change involved in the process, but it is worth it, because offering original and high-quality products in Brazil often ends up damaging the reputation, as it is rare companies that really deliver what they offer It’s different outside.”
