OECD1 1 OECD Workshop on Fostering Development through Entrepreneurship, Cluster and Local Initiatives SEBRAE /Rio de Janeiro Alvaro Albuquerque Jr. Head of International Relations

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OECD

Workshop on Fostering Development through Entrepreneurship, Cluster and Local Initiatives

SEBRAE /Rio de Janeiro

Alvaro Albuquerque Jr.Head of International Relations

Santo Domingo, April 29th, 2005

OECD

Workshop on Fostering Development through Entrepreneurship, Cluster and Local Initiatives

SEBRAE /Rio de Janeiro

Alvaro Albuquerque Jr.Head of International Relations

Santo Domingo, April 29th, 2005

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Brazilian Micro and Small Enterprises Bureau - SEBRAEBrazilian Micro and Small Enterprises Bureau - SEBRAE

MISSION

FOSTER COMPETITIVENESS AND

SUSTAINABLE DEVELOPMENT

AMONG MICRO AND SMALL ENTREPRISES

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THE SEBRAE SYSTEMTHE SEBRAE SYSTEM

STRATEGIC PRIORITIES

1. Reduce and rationalize tax burdens and bureaucracy.

2. Foster the expansion and universalization of credit and capitalization

3. Promote entrepreneurial capacity-building and cooperation.

4. Promote access to technology and enhance innovation capacity.

5. Enhance market access, national and international.

6. First and foremost, perform collective actions focused on local productive arrangements through integrated solutions.

7. Enhance the structure, operating procedures and in-house management of the whole SEBRAE System.

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THE SEBRAE SYSTEM THE SEBRAE SYSTEM

SEBRAE is organized as a SYSTEMSYSTEM, consisting of one coordinating central unitcoordinating central unit and 2727 related units located in related units located in each States of Brazil, plus each States of Brazil, plus the Federal District, the Federal District, operating with full administrative autonomy.

Rio de

Jane

iro

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RIO DE JANEIRO STATERIO DE JANEIRO STATE

TERRITORY

43,910 Km2

0.52% of Brazil

POPULATION14,367,000 inhabitants, distributed as follows:

96% in the urban area and4% in the rural area

Representing 8.47% of the total population of Brazil

GDPR$ 216 Billion

15.29% of the National GDP

ECONOMIC DATA & INDICATORS

Atlantic O

cean

MG

ES

SPRJRJ

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RIO DE JANEIRO STATERIO DE JANEIRO STATE

NUMBER OF EMPLOYEES:

MicroMicro SmallSmall

Industry: Up to 19 employees 20 - 99 employeesCommerce: Up to 09 10 - 49 Services: Up to 09 10 - 49

YEARLY NET INCOME :

Micro: equal / inferior to US$169,000.00

Small: equal / inferior US$833,000.00

MICRO AND SMALL ENTERPRISES IN BRAZILMICRO AND SMALL ENTERPRISES IN BRAZILMICRO AND SMALL ENTERPRISES IN BRAZIL

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Industry Commerce Services Agro. Total %

Micro 689.507 2.624.309 2.163.360 298.523 5.775.699 94,5%

Small 44.415 102.439 117.242 16.194 280.290 4,6%

Medium 9.289 6.618 14.472 1.415 31.794 0,5%

Large 1.530 3.394 19.065 985 24.974 0,4%

TOTAL 744.741 2.736.760 2.314.139 317.117 6.112.757 100%

Number of Enterprises

FORMAL MICRO AND SMALL ENTERPRISES FORMAL MICRO AND SMALL ENTERPRISES FORMAL MICRO AND SMALL ENTERPRISES

In 2003, micro and small enterprises reached 6 million in Brazil, standing out for 99% of

total of formal enterprises.

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THE IMPORTANCE OF MICRO AND SMALL ENTERPRISES IN THE BRAZILIAN ECONOMY

THE IMPORTANCE OF MICRO AND SMALL ENTERPRISES IN THE BRAZILIAN ECONOMY

EXPORTS

FONTE: SISCOMEX e RAIS

In 2003, from the total 19,796 enterprises that exported 47.9% of total exports, 9,749 were micro and small enterprises. The second group shows medium-sized enterprises with a share amounting to 28.5%, and covers the volumes exported by 5,649 enterprises.

TOTALMicro & Small

Enterprises Medium

Enterprises Large

Enterprises

Value 73,084 1,736 5,844 65,401

% Share 100 2.4 8 39.5

Quantity 19,796 9,479 5,649 4,208

% Share 100 47.9 28.5 21.3US$ million

2003

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SEBRAE – RIO DE JANEIRO STATESEBRAE – RIO DE JANEIRO STATE

Anuário Estatístico do Estado do Rio de Janeiro - 1997CIDE

Fonte: Centro de Informações e Dados do Rio de Janeiro - CIDE

ESPÍRITO SANTO

MINAS GERAIS

SÃO PAULO

OCEANO ATLÂNTIC

O

0 10 30 50 Km

Sapucaia

ParacambiJaperi

Itaguaí

Angra dos Reis

Parati

Mangaratiba Rio de Janeiro

Piraí

Rio Claro Nova IguaçuSeropédicaNilópolis São Gonçalo

Niterói Maricá

São Joãode Meriti

Duque deCaxias

Queimados BelfordRoxo

GuapimirimMagé

PinheiralBarra Mansa

VoltaRedonda

RealBarra do Piraí

Valença

Teresópolis

Miguel PereiraEng.Paulo de FrontinMendes

Vassouras PetrópolisPaty do Al feres

Com. Levy Gasparian

Rio das FloresSão José do Valedo Rio Preto

Areal

Três RiosDuas Barras

Araruama

Cachoeiras de Macacu

Rio BonitoTanguá

Saquarema

Silva Jardim

Nova Friburgo

Sumidouro

Bom Jardim

Armaçãodos Búzios

São Pedroda Aldeia

Arraial do Cabo

IguabaGrande

Cabo Frio

Rio das OstrasCasimiro de Abreu

Trajano de Morais

Macaé

Conceiçãode Macabu

Carapebus

Quissamã

Cambuci

Itaocara

CantagaloCarmo

Santa Maria Madalena

São Sebastiãodo Alto

Miracema

Santo Antôniode Pádua

Itaperuna

Aperibé

Laje doMuriaé

Porciúncula

Italva

Cardoso Moreira

Campos dos Goytacazes

São Fidélis

São Joãoda Barra

São Francisco de Itabapoana

São José de Ubá

Natividade

Bom Jesus do Itabapoana

Varre-Sai

Paraíba do Sul

CordeiroMacuco

Itaboraí

Located throughout the State of Rio de Janeiro, SEBRAE/RJ operates supported by Regional Development Agencies, and the SEBRAE Offices and Mobile Units that cover 92 state municipalities State Total: 61 service units

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SEBRAE - RIO DE JANEIRO STATESEBRAE - RIO DE JANEIRO STATE

1. Federation of Industries -FIRJAN

2. Chamber of Commerce -ACRJ

3. Rio de Janeiro Industrial Centre

4. Rio de Janeiro State Federation of Trade and Entrepreneurial Associations

5. Rio de Janeiro Trade Association

6. National Agricultural Society

7. Federation of Micro and SME’s

8. Secretariat of State of Economic Development

9. Rio de Janeiro Technology Network

10. BIO RIO Foundation

11. Rio de Janeiro State Federation of Agriculture

12. SEBRAE National

ADMINISTRATIVE ORGANIZATION -State Advisory Council

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ADMINISTRATIVE ORGANIZATION -State Advisory Council – New members

13. Banco do Brasil

14. Caixa Economica Federal

15. State Development Agency


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STRATEGICAL OPERATING SECTORS – “CLUSTERS”

Oil & Gas

Shipbuilding & OffShore

Tourism, Culture, Entertainment and Articraft

Textiles & Clothing

Metal Mechanics

Agri-business

Civil Construction

Trade and Services

Technology

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RIO DE JANEIRO LOCAL PRODUCTIVE ARRANGEMENTSRIO DE JANEIRO LOCAL PRODUCTIVE ARRANGEMENTS

Indicator Jobs Enterp.Remun. (1,000 US$)

Medium-sized jobs / enterp.

Average Income.

(US$)

Total – Clusters in Rio de Janeiro State 238,005 14,125 123 16.85 520,3

Total Activities – excluding Public Administration /civil service

2,200,560 206,769 725,422, 10.64 329.36

% Share held by Clusters 10.82% 6.83% 17.07% 158% 158%

Source: Prepared by author using RAIS data bank information (2001)

CLUSTERS AND & LPA SHARE IN RIO DE JANEIRO

Total Clusters: 61 Total LPAs: 17

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Exports – RJ State Period: 2000 to 2002

N° Enterprises Value (US$ billion)

State Total 1,601 7.9

Total – Clusters & LPAs 279 5.8

% of Clusters and LPAs in State Total 17.43% 73.42%

Source: SEBRAE/RJ – prepared on the basis of FUNCEX data

LPA: US$ 643.00 Clusters: US$ 520,23 State Average: US$ 329.65

Average Income - Rio de Janeiro State

Throughout this period the oil/gas sector was responsible for exports up to US$ 3.5 billion

CLUSTERS & LPA SHARE IN THE RIO DE JANEIRO STATE ECONOMY


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CHARACTERISTICS OF IDENTIFIED LPAs

• PETROBRAS is the anchor enterprise, with a structure based on centralized governance.

• Ample networking of components and service suppliers.

• The complex of inputs and services supply logistics

encourage local coordination and networking.– RedePetro.

OIL

Macaé

PETROCHEMICALS, CHEMICASL &

PLASTICS

Duque de Caxias, Belford Roxo and São

João de Meriti

• REDUC, PETROFLEX and NITRIFLEX play a core role

•Associated activities: plastics; paints and varnishes; fine chemical products.

• Activities may be coordinated with the institutional support promoted with the establishment of the Gas-Chemical hub.

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OIL

Macaé

PETROCHEMICALS, CHEMICASL &

PLASTICS

Duque de Caxias, Belford Roxo and São

João de Meriti

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RIO DE JANEIRO - LOCAL PRODUCTIVE ARRANGEMENTSRIO DE JANEIRO - LOCAL PRODUCTIVE ARRANGEMENTS


IRON & STEEL

Vale do Paraíba (Volta Redonda, Barra Mansa & Barra do Piraí)

• Key role played by CSN steel mill in rolled products output.

• Present in associated activities: fabrication of cast parts and rendering services.

• Possibility of strengthening links among producers based on the anchor role of the major enterprises.

• Presence of qualified labor force and support institutions.

NAVAL INDUSTRY

Niterói

• Positioning of shipyards (Mauá & Renave) as anchor enterprises.

• Possibility of expanding the number of suppliers with the return of orders.

• Specializing in rigs and vessels for the offshore oil industry. Strong institutional support from the Rio de Janeiro State Government.

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RIO DE JANEIRO - LOCAL PRODUCTIVE ARRANGEMENTSRIO DE JANEIRO - LOCAL PRODUCTIVE ARRANGEMENTS


IRON & STEEL

Vale do Paraíba (Volta Redonda, Barra Mansa & Barra do Piraí)

NAVAL INDUSTRY

Niterói

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RIO DE JANEIRO – LOCAL PRODUCTIVE ARRANGEMENTSRIO DE JANEIRO – LOCAL PRODUCTIVE ARRANGEMENTS


TEXTILES-CLOTHINGPetrópolis

&LINGERIE

Nova Friburgo

• High density with MSE predominating.

• Specializing in knits and clothing (Petrópolis) and lingerie.

• Evidence that local networking is on the rise, linked mainly to the retailing level (Rua Teresa brand - Petrópolis).

• Evidence that local networking is on the rise in Nova Friburgo – Fashion Council – in order to improve the design,quality and exploitation of export potential.

ORNAMENTAL ROCKS

Santo Antônio de Pádua

• Predominance of MSE.

• Institutional support from the Mineral Sector for construction materials- Incentive and Technological Institutions Network -RETECMIN in order to upgrade quality and boost exports.

• Evidence of efforts addressing capacity-building and networking in order to upgrade quality and boost exports.

• Evidence that consortia are being established among producers (Consórcio Pedra Pádua - Brazil).

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TEXTILES-CLOTHINGPetrópolis

&LINGERIE

Nova Friburgo

ORNAMENTAL ROCKS

Santo Antônio de Pádua

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FRUITS

Campos dos Goytacazes and

surrounding area

• Presence of fruit and juice processing anchor enterprises ( Bela Joana).

• Existence of a small producers network that can be attracted by processing industries.

• Significant incentive offered by entrepreneurial and development entities (FIRJAN & SEBRAE).

• Coordination and networking role played by the State Government Frutificar Program.

RED CERAMICS


• Predominance of MSE.

• Need to enhance efficiency and quality of manufactured products in order to boost local networking.

• Importance of support granted by technological institutions to entrepreneurial development (e.g..: CEFET-Campos & SENAI).

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FRUITS

Campos dos Goytacazes and

surrounding area

RED CERAMICS


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CHARACTERISTCS OF IDENTIFIED LPAs

AUTOMOTIVE

Southern Rio de Janeiro State

(Resende & Porto Real)

• Presence of Volkswagen Trucks and Peugeot-Citroën as anchor enterprises.

• Supplier network still shows low local density.

• Suppliers network currently being consolidated in automotive districts.

AUDIOVISUAL

Rio de Janeiro

• Presence of Rede Globo as the anchor enterprise.

• Existence of specialized labor-force.

• Trends towards outsourcing production encourages activity.

• Possibility of networking among agents through a cinema and video complex with government support (i.e. Mayor’s office acting through the Riofilmes).

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CHARACTERISTCS OF IDENTIFIED LPAs

AUTOMOTIVE

Southern Rio de Janeiro State

(Resende & Porto Real)

AUDIO-VIDEO

City of Rio de Janeiro

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TELECOMMUNICATIONS

Rio de Janeiro

INFORMATION TECHNOLOGY

Rio de Janeiro

• Significant role played by telephony carriers, contracting feedstock and services through outsourcing services and feedstock – Polycentric Structure.

• Importance of qualification policies.

• Support from scientific institutions of excellence.

• Support from the Mayor’s Office through setting up the Teleport of Rio.

• Network of small and medium-sized enterprises specializing in software development.

• Importance of technological qualifications for labor-force and the presence of scientific institutions of excellence.

• Existence of Technological Parks and Incubators.

• Possibility of clustering with other centers. (e.g.. Petrópolis-Tecnópolis).

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TELECOMMUNICATIONS


INFORMATION TECHNOLOGY


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CHARACTERISTICS OF IDENTIFIED APLS

TOURISM

Costa Verde

Itatiaia & Resende

Região dos Lagos

Rio de Janeiro

• Predominance of MPE.

• Coordination between agents is measures by local municipal authorities in order to ensure advertising of the regions is done to attract tourists and foster environmental preservation.

• Preparation of a Tourist Events calendar earmarked to cover local actions, as well as portals and the coordination of agents to diversify activities offered.

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PAN-AMERICAN GAMESPAN-AMERICAN GAMES

In 2007, the city of Rio de Janeiro will host the Pan-American Games.

The Municipal authorities have forecasted that some US$ 100 million will be invested 2005 to ensure the success of these Games.

Home page: www.cob.org.br/pan2007

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Entering Guanabara Bay

Copacabana Beach

PHOTO GALLERY – TOURISM IN RIO DE JANEIRO

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Christ the Redeemer Statue

Ipanema

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Historical farms located in the Coffee Cycle Valley

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SEBRAE / RIO DE JANEIRO SEBRAE / RIO DE JANEIRO

CONTACTS

INTERNATIONAL BUSINESS CENTRE CENTRO INTERNACIONAL DE NEGÓCIOS – CIN

Alvaro Albuquerque JuniorHead of International Relations

SEBRAE/RJ

Address: Rua Santa Luzia, 685 – 9º andar – Centro – RJCEP 20030-040

Telephones: (55-21) 2215-9415/ 2240-6006/ 3231-1504Fax.: (55-21) 2262-2757

Call center: 0800-282-7760

Home-page SEBRAE/RJ: www.sebraerj.com.br

Documents

OECD1 1 OECD Workshop on Fostering Development through Entrepreneurship, Cluster and Local Initiatives SEBRAE /Rio de Janeiro Alvaro Albuquerque Jr. Head of International Relations