Doing Business in Brazil

Despite overall growth stagnating in the country in recent years, Brazil is still one of the biggest economies in South America. The country's latest policy changes have resulted in a solid foundation for it to remain competitive in the future, despite rising global inflation and a reduced GDP growth outlook in the short-term. 

As part of these changes, the state has especially focused on technological advancement, industrial development and creating a friendlier environment for expats doing business in Brazil.

Business culture in Brazil

Unsurprisingly, given its size, there are significant regional differences in Brazilian business culture that expats should be aware of. The business environment in São Paulo is known for being formal, for example. Businesspeople from the region value objectivity, honesty and technical skills. In some ways, Rio de Janeiro is known for being more relaxed, especially when it comes to punctuality.

People from the city tend to be more image-conscious and focused on short-term results. These differences are somewhat muted at multinational companies which are more similar to European business environments. 

Communication

Expats who want to get ahead in the Brazilian business world should make an effort to learn how to communicate at the level of locals. The language of business is Portuguese, which is spoken by most of the population. Non-verbal communication also plays an important role. Interactions are often full of gestures and can be very physical, accompanied by long, firm handshakes, air-kissing and slapping on the back. Personal space is not especially sacred. People who are overly reserved are likely to be seen as aloof or odd.

The physical nature of interactions in the Brazilian workplace has a lot to do with the emphasis on personal relationships in the national culture. A lot of value is placed on the traditional family structure and friendships, which has various effects on the business world.

It follows that Brazilian people usually prefer face-to-face meetings to phone calls and written communication. The emphasis on personal relationships, even in the business environment, also means business is typically conducted through personal connections. As such, nepotism is an accepted reality that many expats will have to contend with. 

Hierarchical structure

Brazilian business tends to be hierarchical, with age, experience and etiquette all being highly respected. Expats would do well to avoid criticising others (especially senior figures) at meetings, which would cause them to lose face. Given that it is a culture that puts a high value on social groups, an expat’s outsider status is likely to come into sharp focus in conflict situations.

In contrast, building relationships and friendly communication are very important. People take precedence over appointments. This is not a licence to be late, but it does mean that expats should greet their associates properly, be willing to engage in banter and allow their hosts to initiate talking business.

Dos and don’ts of business in Brazil

• Do be on time but don’t get impatient with Brazilian associates who happen to run late

• Do arrange meetings well in advance

• Do try to speak some Portuguese – it will be well received by local associates

• Don’t talk about the wealth gap or the deforestation of the Amazon rainforest

• Do be informal but not overly familiar, especially at first and until trust has been built

• Don't be frustrated by constant interruptions while talking, as this is acceptable in Brazil