Startups and large companies offer solutions for entrepreneurs.
With the closing of stores, gyms, entertainment centers, and other businesses in hundreds of Brazilian cities as a measure to prevent the spread of the coronavirus, Brazilian entrepreneurs need to find solutions that allow them to stay in business.
The situation is more critical for small and medium-sized enterprises (SMEs) at this time. Many lack reserves that allow them to maintain their financial obligations.
In Brazil, some sectors have already received support measures. As practically all the shopping centers in the country were closed by public decree, eliminating the sales of these establishments, the owners have sought solutions that allow them to reduce losses during this period. According to the Brazilian Association of Shopping Centers (Abrasce), which represents the owners of chains of shopping centers, the collection of rent from tenants will be postponed until the end of the crisis.
For restaurants, the Brazilian Association of Bars and Restaurants (Abrasel) tries to negotiate alternatives with the federal, state, and municipal governments. The association is also speaking with delivery apps to reduce the fee they charge to restaurants for using the platform, which can reach 30% of the order value.
Tools For Entrepreneurs During The Crisis
Startups, SMEs, and large companies are also creating solutions for entrepreneurs in this time of crisis, such as free access to platforms or tutoring, new services, and even access to credit. These are some of the initiatives:
Support For Work At Home
With the sudden rise of the home office due to social isolation, many companies need to rethink their work processes. Apponte.me, a time recording platform, offers its service free of charge for 60 days. The startup was created four years ago in Santo André, Sao Paulo, to simplify employee hours records. A way to record the point more digitally was created by taking the employee photo, either with a tablet to register in the office or an application for remote employees. Today, around 5,400 CNPJ use the startup’s solutions.
In just one week since the launch of the free initiative, Apponte.me has received 350 contacts, the majority of people, and companies who did not know the platform.
Daniel Godoy, president of Apponte.me commented that Brazilians are not used to doing home office, but with the crisis, many people have discovered that the model works and can even increase productivity.
Hybank, a financial management fintech for microenterprises, opened service channels to answer questions from the public. Through emails, social media, and chat, entrepreneurs can answer questions and discuss strategies to keep the business healthy. The startup set up its legal team for micro and small business owners to answer questions about vacation anticipation, FGTS release, office hours, and other issues.
João Gabriel Chebante, the founder of Sucellos, strategic brand management, and risk investment consultancy, offers one-hour mentoring to new companies and entrepreneurs. “The moments of crisis can lead entrepreneurs to reflect on the business,” he says. The idea is to help companies rethink their businesses and look for solutions like new products, special lines of credit, and negotiate the rental of the store and office, for example.
Fold, maker of a paper-like material, completely changed its business model in one day. The startup, which turns four this month, saw its sales start to drop nearly two weeks ago and decided to create a new website, called Dobraflix, separate from the platform they use to sell purses, shirts, and shoes.
The goal is to offer content and courses for entrepreneurs, entrepreneurs, and employees, like tips for creating an impactful business, a collaborative economy, and conscious capitalism. Around 10,000 people have already signed up to access the material.
Other companies also started offering content through the Dobraflix platform, such as Warren, WTF! School, Aviva, and Smile Flame “We redefine our business. More and more people know our company and share what we do, “says Guilherme Massena, Dobra co-founder.
Support Funds and Access to Credit
Many small businesses do not have enough reserve or cash value to go through this period without serious risk to their financial health. Banks and companies have launched funds to support this audience.
This is the case with Stone, a payment processor that announced it will make nearly $ 18 million in microcredit available to retail companies located in states that have enacted restrictive measures to contain the coronavirus pandemic (Covid-19). The company will also allocate R $ 30 million in financial incentives to customers, such as a monthly fee waiver in May for all machines and the delivery of additional machines at no cost to delivery operations, for example. The company hopes to benefit some 200,000 clients across the country with these measures.
Brazilian delivery company iFood also announced last week that it will allocate R $ 50 million of its revenue to a restaurant assistance fund, with a special focus on small local establishments, strongly impacted by the crisis caused by the coronavirus pandemic.
The iFood informed that it will anticipate the reception of the restaurants that operate on the platform, seven days after the sale made by the application. According to the company’s calculations, this will inject up to 600 million reais into the Brazilian market. The delivery company also announced the creation of a 1 million reais fund to support partner drivers who need to be absent due to the coronavirus.
Santander Brazil announced special conditions in financial solutions to encourage the entrepreneur. The bank’s client companies have a three-month grace period for the payment of the first installment when contracting working capital lines. To do this, simply receive money from the sales of any card machine in your Santander account. MEI (Individual Microentrepreneurs) customers, on the other hand, maybe exempt from paying the service package fee charge and conduct TED and DOC free of charge for up to two months, if they use the value of fees as a credit for the payment of energy and water bills. , telephony and others in direct debit and DDA.
The Bank of Brazil announced that micro and small companies can extend the payment of the next two installments of their financing from the bank in a move to help the segment to ensure the payment of employees and suppliers. The bank said the extended installments will be migrated at the end of the debt payment schedule. The institution also stated that the incidence of interest will be diluted throughout the financing.