The results of a survey published by IBGE (Brazilian Institute of Geography and Statistics) state that almost 70% of small companies created in Brazil, file for bankruptcy. This is an alarming rate already known amongst Brazilians. The survey indicates that credit allowances is one of the major factors that make the development of these businesses impossible, in addition to the low competitiveness and lack of suitable planning skills. The lowest rates for bankruptcy are found amongst companies of 100 or more employees because they are less vulnerable to the economic variations. Furthermore, trading is the sector with the most bankruptcies, followed by the services and industrial sectors. In addition to that, Brazilian bureaucracy is one of the worst in the world when opening and closing companies. According to the World Bank, to open a company in Brazil nowadays, 15 procedures are required and it takes 152 days, what leads many companies to give up attending some of the government demands.

On the bright side, in Brazil the popularity of important best practices (such as Environment, Health & Safety; Suppliers and Employees Management Programs; etc.) are increasing significantly, because companies are realizing that it increases the company’s competitiveness and trademark.

This is why having the “knowledge”, is a strategic and critical key to doing business anywhere where you are not physically present. Knowing who you deal with; who you hire; or who represents you is crucial in doing international business. Whether working on a project or building relationships with a manufacturer, the key to success is transparency; it is the beginning of everything successful!

The Background Check produces an “intelligent alert” allowing you to SEE the real situation, diminishing the risks of non-expected problems that can jeopardize a commercial relationship, such as: tax evasion, environmental crime, bankruptcy, contracts, criminal lawsuits, etc.