Brazil’s poorest region is also one of its most innovative

While the Northeast region, Brazil’s poorest, accounts for just 18% of the country’s registered businesses, its share of startups is significantly higher, at 24%. The gap hints at something policymakers have long hoped to see: early signs that the region — historically locked into just 14% of Brazil’s GDP — may finally be cultivating the kind of innovative ventures capable of lifting its long-stagnant economic profile.

Wébia Silvia, who oversees a program focused on startups from the Northeast at non-profit organization Sebrae (the Brazilian Micro and Small Business Support Service), describes the landscape as an ecosystem “still in the making,” but one that has picked up real momentum only in the last few years. 

“Not long ago, when we looked for projects that truly fit the definition of a startup — innovative initiatives with technological grounding, scalable business models and a pitch for investment — there simply weren’t many to be found,” she said.