Critiquing Business Plan In Emerging Market.Businesses In Brazil Assignment

Critiquing Business Plan In Emerging Market.Businesses In brazil-nut tree - Assignment ExampleThere are cases and instances that governments extend to come to the aid of some of these entrepreneurs by use of favorable macro and micro economic policies. This notwithstanding, not all of these policies have eliminated the barriers. Interesting, studies have even corroborate that most economic policies put in place by the Brazilian central government also turn round to be barriers for most entrepreneurs quest to start up raw(a) businesses especially those in the oil and gas sector, of which the biodiesel industry is part (Gartner, 1985). In this critique paper for a business mean that is ready for implementation of a biodiesel startup political party in Brazil, the various barriers that may possibly exist and methods that can be used to mitigate each(prenominal) of these barriers are outlined. Licensing The licensing of company system that exists in Brazil could serve as a major barrier to both the entry and growth of the new biodiesel company intended for Brazil. This is because there are licensing regulations, which have been criticized by most economists and market players as being investor hostile. Unfortunately, such hostility exists in cases that the government feels that the coming of accredited companies may be a major competition for existing and known state corporations (Ivanova, 2009). A typical example of this is in the area of energy, where even though there is an blossom market, the state still practices a casual monopoly, trying to prevent private participation. As part of the casual monopoly strategy, private individuals are make to undergo several routine processes in getting license to operate (Krasniqi, 2007). Meanwhile, the possession of a license to make the commencement of business in Brazil is very important as it opens the avenue for such companies to benefit and enjoy trade incentives that may exist. What is more, in order to have an international reputation and open ones business up for international investment and other forms of business expansion options such as enlistment on the Brazilian commonplace Exchange, license registration is demanded. A method to overcome this barrier would be to first enter the market as a partner to an existing registered topical anesthetic company. This way, the company will not be given the kind of hostile treatment given to expatriate companies. After some time when there is a separation in the ownership of the company, the license of the original company will over both separated companies if there was ownership up to a certain number of years. Lending and Credit bias in favor of multinationals Access to currency for entrepreneurs remains a major barrier to growth for most new entrants in Brazil. This is because there is a form of lending and credit bias that favors existing and well established international and multinational companies as against new entrants and triv ial and medium home plate businesses in Brazil (Foley, 2003). Commonly, the financial institutions, most of which are banks try to justify some of these biases by explaining that new entrants and small and medium scale companies lack credit credibility. What this means is that they are not tried and tested in their finances such that they can be trusted with huge sums of credit. In most cases therefore, there is a limitation on the amount of money that can borrowed by these new entrants. Where there are no limitations on the quantum of money that can be borrowed, there are strict lending processes that delay