Fundo Vale supports and participates in launch event for a biannual study aimed at guiding decision making in the impact ecosystem and highlighting businesses all over Brazil.
Every two years since 2016, Pipe Social has released a comprehensive study of the Brazilian impact market, tracking businesses that are solving the country’s challenges in line with the 17 United Nations Development Goals and 2030 Agenda. The latest edition of Brazil’s largest impact market study was launched in October, with the support of Fundo Vale and in partnership with Quintessa and its Impact Base platform. The 4th Impact Business Map is designed to guide organizations that are building and fostering the transition to the bioeconomy, and it also takes a special look at environmental, social and governance (ESG) challenges and opportunities, to understand how impact businesses can support companies in meeting their goals.
In light of the climate crisis, the study is even more relevant, as it describes the context, rethinks pathways and sets out new strategies. Through the participation of 1,011 impact businesses and more than 11,000 entrepreneurs, it was possible to track this market by tracing the profile of impact entrepreneurs and businesses, evaluating impact business data and understanding the social and environmental commitments of each initiative. The report also presents trends and recommendations for the sector.
Business activity and profile according to data from the 4th Social and Environmental Impact Map Once again, most of the mapped businesses (59%) are based in Brazil’s Southeast region. However, the impact they generate is nationwide. With regard to time on the market, 31% of them have been in business for two to five years, 29% have been in business between five and 10 years, and 15% have been operating for more than 10 years. This indicates the maturity of the ecosystem.
Another notable fact is that 84% of the businesses are formally registered. Regarding marketing format, 59% sell to other companies, 36% partner with other companies to reach consumers, 33% work directly with end consumers, and 26% sell to public sector bodies or take part in tenders and online auctions.
Looking at revenue in 2022, based on 514 businesses that declared this indicator, the Social and Environmental Impact Map states that 29% of companies generated annual sales of up to R$50,000, while 12% generated between R$51,000 and R$100,000, 21% generated between R$101,000 and R$500,000, 13% generated between R$501,000 and R$1 million, 22% generated between R$1.1 million and R$10 million, and 3% generated more than R$10 million.
Entrepreneurship with impact: How can entrepreneurs use the Map to help develop their businesses?
This question was the subject of a discussion held during the online event to launch the Map on October 25, which featured Liz Lacerda of Fundo Vale’s partnerships and business promotion team, who was also involved in developing the study. She spoke about the perspective of funders, emphasizing that the impact business ecosystem welcomes all stages of the entrepreneurial journey.
“Through data and access to information, entrepreneurs have the opportunity to connect their business to impact, not only from the point of view of diversification or the quantity and diversity of financing mechanisms that are emerging, but also by understanding that the impact business ecosystem sees the need and opportunity to calibrate investment, financing, support and business promotion resources for the different phases. This document is a literacy tool for those who are not yet making an impact and a map for entrepreneurship with impact.” Liz Lacerda
Guide 2.5 + Impact Base
One of the Impact Map’s partners is Quintessa, a leading Brazilian impact accelerator, which in September 2023 launched Guide 2.5, a study of initiatives that are developing and investing in impact businesses in Brazil. In Guide 2.5, Quintessa mapped financiers, while in the Impact Map, Pipe Social made a diagnosis of businesses in the sector. Through these two studies, these two prominent organizations in the impact ecosystem brought together their bases and promoted connections between investors and partners, creating the Impact Base – a platform that connects impact business entrepreneurs to organizations and initiatives that support the ecosystem.
In this way, the offer of benefits to entrepreneurs is organized and increased, broadening connections with the market. “It’s a strategy for businesses and catalyst organizations that provides publicity and transparency, as well as bringing all this information together in one place, making it more practical for both sides. It’s a very rich and free contribution for anyone who wants to access it,” said Lacerda.
Fundo Vale was one of the institutions mapped in Guide 2.5, in which Vale’s 2030 Forest Goal and the Forest & Climate Challenges were mentioned. We sponsored Guide 2.5, held a series of meetings and recommended forest and climate-related
organizations linked to all the catalyst organizations we work with, to help Quintessa gather information. Together with other funders, we also discussed the main takeaways from this study and offered our feedback.