World Cup grosses small businesses US$ 225 million
Such is the additional revenue the championship should bring to over 40,000 micro and small Sebrae-affiliated businesses. The best opportunities were in construction, tourism and services.
São Paulo – As a result of the Fifa World Cup, 40,000 Brazilian micro and small companies that have prepared to do business during the tournament are grossing an additional R$ 500 million (US$ 225.6 million). The figure was released this Monday (7th) by the CEO of the Brazilian Micro and Small Business Support Service (Sebrae), Luiz Barretto, during a press conference at the World Cup media centre in Rio de Janeiro.
The additional revenue will go to a group of 43,910 micro and small businesses and individual micro-entrepreneurs who have sought out the Sebrae in order to prepare for the World Cup in Brazil. They joined in a project which began in 2011.
“We were expecting half a billion reals. We have reached that milestone this week, and we will release our results after the Cup. It has been a success,” Barretto said. As a case in point, he mentioned a Rio-based construction material supplier who improved his business and obtained certifications in order to supply ramps to the Maracanã Stadium.
The preparation and follow-up actions with participating companies took place mostly in the 12 World Cup host cities. Sebrae invested R$ 90 million (US$ 40.6 million) in the project, as per information released by the World Cup Media Centre based on Sebrae figures. Of all the participating enterprises, roughly 10,000 will continue to receive guidance from the Sebrae.
“We work with the idea of leaving legacies, of preparing companies not only to earn more in these World Cup days, but to become more competitive, to gain quality and survive on the market, which is becoming more and more competition-oriented,” said Barretto. “We are confident that the companies we have worked with will be more competitive and will make it on the market,” he said.
According to a research commissioned by the Brazilian Ministry of Development, Industry and Foreign Trade from the Foundation Institute of Economic Research (Fipe), the total impact of the World Cup on the Brazilian economy should be R$ 30 billion (US$ 13.5 billion). The projection is based on the impact of the Confederations Cup, which grossed R$ 9.7 billion (US$ 4.3 billion). Sebrae had assistance from Fundação Getúlio Vargas (FGV) on calculating World Cup revenues for small businesses.
The main industries covered by the project were civil construction, tourism and services. Apart from receiving training, the companies had the chance to showcase their products at venues such as Brazilian handicraft showrooms in World Cup host cities and stores that sell typical Brazilian items.
*Translated by Gabriel Pomerancblum