Brazilian SMBs coming out of economic storm

Brazilian SMBs coming out of economic storm

A recent report by AMI revealed that negative business sentiment is beginning to level off and is being replaced by a cautiously optimistic attitude among SMBs in Brazil

Friday, August 14, 2009

NEW YORK, US: Negative business sentiment among small and medium businesses (SMBs) in Brazil are beginning to ease, as firms continue to weather the economic storm, said a recent study by AMI.

In the first quarter of 2009, three out of four of these businesses admitted being “very concerned” about the economy; these numbers have started to decrease in the second quarter of 2009.

Approximately one in ten small businesses reported that they are not as concerned as they were they were in the previous three months.

Medium businesses are not as optimistic, said a press release.

The findings come from a recent survey by New York-based Access Markets International (AMI) Partners, Inc.
The findings reveal that negative business sentiment is beginning to level off and is being replaced by a cautiously optimistic attitude among SMBs in Brazil.

This change in attitude is beginning to fuel a desire for ICT products and services once again.

“SMBs have certainly tightened their belts and cut costs in a number of different ways over the past several months,” says Chad Henry, an associate at AMI. “They are, however, beginning to see positive signs with regard to their growth prospects relative to the beginning of 2009.”

The study reveals that a healthy level of latent demand is beginning to enter the Brazilian IT market once again.

“One of the primary drivers of this IT demand is the need for firms to connect with their current customers and manage those relationships in a more effective manner,” said Henry.

According to the study, While the vast majority of SMBs report having been negatively affected by the economic situation in one form or another (restricted cash flow, decreased revenue, etc), they also see a clear need to empower employees with productivity tools that will help deliver business and maintain customer relationships, added the release.

The study, titled “State of the Brazil SMB Market: Quarterly Pulse, Wave 2,” tracks how SMBs are navigating the economic downturn.

Specifically designed to address changes as they happen amid the economic crisis, the study covers the economic impact on SMBs, ICT spending/total addressable market, buying behavior, and routes to market/channels.

©CIOL Bureau