Business investment opportunities in Sao Paulo

The case with many large cities in developing countries is that they are in need of foreign capital. Why? Well, first and foremost, open and free trade eventually reaches out to this far-flung capital of lands which have only recently brought about free trade policies. Business investment opportunities in Sao Paulo are many and numerous – Brazilian expectations of foreign capital can never be truly sated, considering that the country is almost the size of mainland Europe, and with a population of two and a half Germanies. Sao Paulo is the largest city of this economic giant, and, as such, there are some great business investment opportunities in Sao Paulo to be found.

One of the best business investment opportunities in Sao Paulo belongs to the field of finance

Sao Paulo was once and industrial-agricultural city, back in the first half of the 20th century. Think of it as a conglomerate of companies. Given Sao Paulo’s position, it’s no wonder that it became prosperous soon enough. People moving to Sao Paulo are often stricken with a stark contrast between the towering business centers and the outlying neighborhoods and favelas.

Some time ago, agriculture used to be pretty big in Sao Paulo. For reasons cited below, this is no longer the case.

This is because the main sector of Sao Paulo is no longer industrial or agricultural. It belongs to the third sector, commonly known as finance. In the center of it all lies the Sao Paulo Stock Exchange, which is also known as B3. It has the capitalization of around $2.37 billion, making it one of the largest stock exchanges in the world. If you’re successful, your company may soon find itself on the stock exchange, which is why many US companies have started moving to Brazil from the US.

However, the industry didn’t go to waste, either

Sao Paulo houses 12 million inhabitants, 10% of which work in the industry sector. Keep in mind that this population also counts in children and the elderly, so you can see why 1.2 million is a significant workforce. You see, the industrial sector of Sao Paulo contains several locations of extreme importance to the economy not only of the State of Sao Paulo but Brazil in general:

The industry is definitely among the best investment opportunities in Sao Paulo.

• Taubate is where several companies, including Volkswagen, LG, and Ford have made their manufacturing plants. Keep in mind that they’re mostly producing parts. This place has been an industrial center since the late 19th century;
• Santo Andre used to be an agricultural hotspot until the 1930s when the first railroad was constructed. After that, making the place more accessible opened business investment opportunities in Sao Paulo because the raw materials collected in Santo Andre could be easily processed in Sao Paulo. Today, it houses the factories which produce farm equipment;
• Sao Bernardo de Campo – a place formerly known for its carmaking industry, today, it’s one of the best business investment opportunities in Sao Paulo due to its manufacturing plants of delivery trucks and tractors. In recent years, all these investments have created a large amount of job opprotunities in Sao Paulo.

So, what can you learn from all this?

Sao Paulo is in the general vicinity of a plethora of natural resources. Of course, they’ve been mostly taken by companies – both local and foreign – and now the stakes have risen. Agricultural land, while still relatively cheap, is much more expensive than it used to be, and might yield smaller results in the first few years. However, sectors like transportation and accounting are always welcome – those auxiliary services that actually constitute the best business investment opportunities in Sao Paulo.

The industries have been taken up, as we have mentioned, by giants such as Ford. They’re entrenched on the market and will not give up their position without a fight – who would? On the other hand, you could help them establish reliable supply chains, which is why we suggest that logistics and transportation companies are a much better idea. The profits are to be gained, in this case, from the tertiary sector.

Best business opportunities in Sao Paulo manifest in many unexpected forms

Another natural resource which can be exploited by small companies doesn’t have that much stiff competition and a low market entry bar is fishing. The waters around Sao Paulo are teeming with fish, making fishing one of the best business opportunities in Sao Paulo, for market reasons – fish is a food. People eat it, and if they don’t, it will decay. This makes sure that there’s a constant demand for fish and fish products on the Sao Paulo market. It’s cheaper and can be harvested in much greater quantities than, say, meat. It’s also healthier.

Fishing remains, to this day, one of the best business opportunities in Sao Paulo.

On the minus side, you will need boats and more than just a few sturdy men, ’cause it’s not an easy job, as any fisherman will tell you. Fishing companies moving to Sao Paulo from the US know this well, so they make sure they have some venture capital on the side just in case. Their Brazilian and international competitors are a tough bunch to beat.

Lastly, if that’s your thing, capitalize on the tourism

Brazil is a really popular tourist destination. It’s 7.5 thousand kilometers of coast annually attract more than seven million people on an annual basis. Naturally, some destinations are more desirable than others, and such is the case in Sao Paulo, which has a lot of decent beaches. And if there are people, there’s demand for something, you just have to pinpoint what that something is. In cases that include tourists, it’s fun, relaxation, humor, friends and an overall good time. The first thing that comes to mind is a nightclub, or if you’re more conservative, a restaurant.

Opening a new business and entering the market isn’t hard, but that’s just one part of the journey. Remember that Brazil is still in need of investment and if you’re gonna be the one to provide it, provide it in the right places. Some industries, while undoubtedly useful, are past their prime when it comes to investment, so make sure you check for opportunities yourself!