Recent research on Forbes It showed that the number of immigrant business people has been lower in recent years thanks to immigration policies, but this has not been an obstacle for Brazilian companies to seek internationalization as an alternative to the slow economic recovery that Brazil is experiencing.
This setback in immigration led Joe Biden to review immigration protocols to create incentives for investors in the country, but the high cost, given the current exchange rate, was one of the company’s biggest challenges.
One proposal to attract new investors is that 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 ahead that can be 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 had to return to Brazil after the fallout from its stay, where it faced an even bigger challenge: Brazilian taxes on the luxury import trade.
This experience of visa refusal happened with Sendbird, founded by John S. Kim, who, despite moving millions of dollars and generating 800,000 jobs, had his application for a green card denied.
With the proposal of the President of the United States anticipating the possibility of obtaining an EB-5 visa, the investor must contribute at least $500,000, which reflects more than two million riyals, out of the reach of young people. Entrepreneurs aiming to internationalize companies, whether through a financial 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 needs increase, given the exchange rate for converting the riyal into the dollar, there are other challenges to overcome.
“This value directly affects the small business, as a significant portion of domestic jobs in the United States come from foreign firms, as well as moving the production chain across the country,” stresses Raphael. The New Jersey-based company attempted to immigrate to Florida due to the significant growth in the area just before the visa was refused. According to the founder of Hyped Angels, the biggest challenge facing an entrepreneur is overcoming the bureaucracy imposed primarily in the United States.
According to the US State Watch’s semi-annual report from BMO Economics, Florida grew 3.2% in real GDP, keeping the state at the forefront of development, with the largest community of Brazilians focused outside the country, and it’s the main choice for business. They seek to internationalize their companies.
Among the factors that favor Florida’s climate 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 to do so. internationalization.
Raphael says that once the bureaucratic aspects are overcome, the entrepreneur must 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, 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 He wants Santander What helps free entrepreneurs in their quest for internationalization into networks, groups, and ideas.
“An entrepreneur seeking internationalization must be aware of the risks, the necessary adjustments and any changes involved in the process, but it is worth it, because offering original and high-quality products in Brazil often damages their reputation, which is rare. Already what they offer differs on the outside.”
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