* Diogo Catão is CEO of Dome Ventures When speaking from a global perspective, investing in entrepreneurship is seen with great importance, both in the public and private sectors. In Brazil it is no different. Territorial development requires both private initiatives and public policies to encourage businesses to dare […]
* Diogus Cato is managing director of Dome Enterprises
When speaking from a global perspective, investment in entrepreneurship is viewed with great importance, both in the public and private sectors. In Brazil it is no different. Territorial development requires both private initiatives and public policies to encourage businesses to dare and invest in innovation. Therefore, these companies can stimulate the creation of other solutions.
This is the ideal cycle of evolution and competitiveness that our country needs. The importance of investing in innovation is mainly to generate competition between companies at a regional, national and international level.
The public sector must foster this ecosystem so that new entrepreneurs, new startups and new solutions that optimize society always emerge. I emphasize that the higher the risk, the more the private sector tends to withdraw, which is why the public sector must carry out an economic upheaval, fueling this private sector retreat.
There are several areas that need investment and that the private sector does not frequent. Therefore, public policies and government investment in the area are essential for the boldness of entrepreneurship, innovation and technology.
A survey conducted by the National Confederation of Industry (CNI), throughout 2020, showed that 90% of companies do not use public sector resources. That is, many startup investments are made possible by the private sector. Only 10% of entrepreneurs use public funding for research and development, generally associated with Finep (financier of studies and projects), the Ministry of Science and Technology, among other means.
Roles of the public and private sector
Therefore, the importance of the private sector is enormous within the ecosystem, also to cover the technological risk that the entrepreneur would not be able to bear alone. This investment can take place in two ways: directly, from individuals to companies, and indirectly, through risk capital And private equity – companies formed by investors who bring greater volumes to organizations so that they can grow sustainably.
The public sector, on the other hand, provides for the growth of the economy by making resources available in an efficient and structured way, so that the entrepreneur can invest in his own production capacity, aiming at the development of society as a whole, the reduction of inequality, well-being, always through the lines of research and development. Here innovation in the business sector and in the social sector are the main benefits involved.
A govtech providing a solution for a city hall, for example, benefits the company through more agile management, primarily benefiting customer service. On the other hand, solutions that seek to improve access to health and education, address gender inequality, environmental impacts, among other points, tend to work more directly with a social focus.
The fact is: Brazil needs to invest in these two areas so that society increasingly gains from applicable and replicable technological solutions.
🇧🇷The best content in your email for free. Choose your favorite Terra newsletter. Click here!
Source: Terra
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
