After decades of hyperinflation, borrowing is considered risky business, so spreads remain high and long-term loans are scarce. Entrepreneurs pay over 30%/year to borrow money if they have a good credit score.
Venture Capital investing is fraction of capital invested in the United States, at less than $1B USD. One of Brazil’s largest PE investors is BNDES (Brazil’s development bank), and it has suffered massive budget cuts due to government contraction further.
Philanthropic giving totals approximately $10M USD, 1/18th of annual giving the US. Though the government does not provide tax incentives for giving, a philanthropic and social finance culture is emerging and developing slowly.
As a result, we fund organizations that provide social entrepreneurs subsidized capital and train them in financial literacy to support their growth.