Trust, finance and sustainable entrepreneurship in Brazil

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Please cite the paper as:
“Maria Alejandra Caporale Madi, (2014), Trust, finance and sustainable entrepreneurship in Brazil, World Economics Association (WEA) Conferences, No. 1 2014, Is a more inclusive and sustainable development possible in Brazil?, 5th May to 12th August 2014”



In absolute terms, Brazil has almost 33 million people playing some entrepreneurial activity where the presence of women is outstanding. Considering this background, this paper aims at increasing the understanding  whether the interactions between  trust, finance and entrepreneurship in contemporary Brazil could enhance sustainable growth. The importance of this  attempt is due to the need to  enhance further understanding of the current competitive features of  micro and small business that are  threatening their survival conditions.

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6 responses

  • Leonardo says:

    Professor Madi,

    Your article showed the vulnerability of the MSEs in Brazil.
    As you wrote “Changes in conventions toward business sustainability, as Keynes recalled, rely on norms, expectations and actions that could favor long-run investments with inclusiveness.”

    Actually, we are observing the creation of the New Development Bank and the Contingent Reserve Arrangement. In your opinion, do these new institutions have the possibility to favor long-run investment that will promote sustainable entrepreneurship, economic growth and social inclusion?

    • Maria Alejandra Madi says:

      Many thanks for your comments. Since the globalisation of finance accelerated in the last decades, development banks have become more important in the general discussion over MSes. Development banks do have to do with the use of financial services toward long-run investments and sustainability.
      We acknowledge this is a very important point and we believe that the discussion about the “governance” of the New Development Bank is decisive to
      promote sustainable entrepreneurship, economic growth and social inclusion. The creation of the institutions is one requirement. Hoewever, we need to think about its governance because of the political pressures that arise from big business.
      Again, many thanks for your comments.
      Maria Alejandra

  • Is very important the paper of Maria Alejandra, since sustainable entrepreneurship is now a global phenomenon in which various institutions, public or private investment make. This research can be seen through innovations in products and services, technological development and wealth creation, both economic and human capital. We know that entrepreneurship is focused on creating economic value while expanding sustainable entrepreneurship that goal also covers the sustainable development and their social and environmental benefits. For the case of Brazil, it is worth observing the text presented by the focus of the increasing involvement of women, improving the educational system that has stimulated the entrepreneurial culture and sustainability among the young and the relatively high level of activity in Brazil

    • Maria Alejandra Madi says:

      Many thanks for your comments, they will be very important to strenghten the argument relative to the increasing involvement of women in MSEs.
      Since the globalisation of finance have accelerated social exclusion in the last decades, the role of women as entrepreneurs should be certainly highlighted- mainly in poor and middle-income countries.
      Again, many thanks for your comments. We will make the best to include your comments in our research studies.

      Maria Alejandra

  • The concept of the tripod of sustainability, or Triple Bottom Line concept, is based on economic results, Social and Environmental Responsibility.
    Many companies, until nowadays, rely on a heritage-based tradition; they still haven’t absorbed new business views, perhaps because these companies are family-run business or because they are still run by their founder. The intention here is not to downgrade this idea; however, things have been evolving, changing and it is possible to realise that the second and third generation, which are taking up positions in these companies, are more sensitive towards issues related to social and environmental responsibility. On the one hand, even society has started to pressure companies; on the other hand, most of the small to medium-size companies, which are suppliers for the larger ones, have also been pressured once these large companies require from their partners the same patterns of responsibility. Therefore, if a Brazilian company, which supplies to a large company, does not meet its requirements, it is doomed to failure.
    Considering sustainable entrepreneurship, what is demanded of a company nowadays is totally different of what was demanded thirty years ago. On the whole, it is possible to mention that this is due to a change in values, social and environmental issues. Society has started to demand from companies a greater commitment to social responsibility and that they do not worry about profits only. Certainly, companies need to be profitable but in a social and environmentally responsible manner. So, this was what has changed. Some companies have definitely adopted the idea; others adopted the social and environmentally responsible behaviour as a matter of image. Companies which have definitely adopted the social and environmental responsible behaviour, at least in terms of big companies, have their stocks most valued once they have high levels of corporate governance and transparency.

    • Maria Alejandra Madi says:


      Many thanks for your comments, they will be very important to strenghten the argument relative to the relation between governance and sustainability in the Brazilian MSEs.
      As you said, since in the last decades higher pressures to sustainable entrepreneurship have arisen, we could certainly highlight sucessful examples of social and environmentally responsibility among the Brazilian MSEs in our future research studies .
      Again, many thanks for your comments.

      Maria Alejandra