Entrepreneurship in the Brazilian offshoring industry Essay -- Brazil

Case 1: Entrepreneurship in the Brazilian offshoring industry Brazil is one of the nations included in BRIC (Brazil, Russia, India, and China). In the past, Brazil’s outsourcing industry has been the smallest of the four BRIC nations. This is very surprising due to the close proximity to the United States and the current trend of â€Å"near-shoring†. However, due to recent governmental backing and inflows of capital Brazil has begun to improve and could possibly overtake Russia, India and China in the offshoring industry. The most promising sector in Brazil is their IT sector. Capital Access Index 2009 Access to Capital Brazil is the fourth-best country in Latin America for access to capital for entrepreneurs. Much of this improvement can be seen from their significant advances in bond market development and alternative sources of capital[1]. At the end of 2008, local and foreign investors had committed $28 billion in venture and private equity capital to Brazilian companies. That's up from $6 billion in 2004, amounting to a hearty 50% compound annual growth rate over the last four years[2]. On June 25 2009, Brazilian stock exchange Bovespa hosted the world’s largest IPO, a $4.3 billion offering by Brazilian credit-card processor VisaNet. Conditions in Brazil have been improving steadily. The country has achieved macroeconomic stability and institutional maturity and is now undergoing broad and fast-paced expansion, driven by an increase in income and social ascension as well as an increasingly important position in international trade. As well, Foreign Direct Investment (FDI) will reach an a nnual record of US$60 billion in 2011[8]. Even though entrepreneurs are currently enjoying easy access to capital, it is a concern that co... ...et and Trade Profile, December 2011, Visit Britain. http://www.visitbritain.org/Images/Brazil_tcm29-14673.pdf [10]Nes, Egil, May 23, 2011, The Brazil Business. http://thebrazilbusiness.com/article/trends-of-doing-business-in-brazil-in-2011 [11] Brazil Economic Outlook At A Glance, June 26, 2011, Finance N Investment.com. http://www.financeninvestments.com/economics/brazil-gdp-growth.html [12]Background Note: Brazil, November 30, 2011, U.S. Department of State. http://www.state.gov/r/pa/ei/bgn/35640.htm [13] Baby Steps, September 17, 2011, The Economist. http://www.economist.com/node/21529045 [14] Comparing Exports of Goods Among BRIC Nations, November 8, 2011, Seeking Alpha. http://seekingalpha.com/article/306378-comparing-exports-of-goods-among-bric-nations [15]Underwood, Graham, 2012, sourcingfocus.com. http://www.sourcingfocus.com/site/opinionscomments/757/