A new generation of young entrepreneurs are spurning their family businesses to step up to the plate drive Brazil towards creating more wealth.
As self-made millionaires, they are leading the way in creative industries, the media and technology, according to a study by Ledbury Research.
Profiled as imaginative and progressive 25 to 40 year olds with rich parents, these entrepreneurs learned the ropes about running a business on the shop floor and then decided to go it alone rather than join the rest of the family.
“Just because they come from a privileged background does not mean they do not have a strong work ethic,” said Nicola Ko, of Ledbury Research.
“They want and need to make money to show their own worth and because having your own money gives independence.”
Dynamic and driven
Although they may have shunned their family businesses, nevertheless, they gained a helping hand financially when starting out.
They are proving dynamic and driven – with the number of millionaires in the age group rising from 345,000 in 2010 to 383,000 in 2013.
These entrepreneurs are taking advantage of an upturn in the Brazilian economy.
With a World Cup and Olympics on the horizon, Brazil emerged from recession to spur GDP growth to 7.5% and has developed into the world’s eighth largest economy.
So much so, that the world’s leading luxury brands are making a play for the wealth of these young entrepreneurs.
In three years, these brands have almost doubled their presence in Brazil – Louis Vuitton has five outlets in Sao Paolo, Rio and Brasilia, while Ferrari has opened the company’s first dealership in Sao Paolo.
Luxury brands
Other brands vying for the money of this new millionaire class include Cartier, Tiffany, Bulgari, Burberry, Armani and Chanel.
Brazil is richest and largest economy where the 165,000 wealthiest people increased their total net worth by 3.7% to more than $4 trillion last year, ranking only behind the USA and Japan.
The study also identified that wealthy Brazilians are heavily influenced by the arts and regularly travel to attend art exhibitions, plays and operas.
Favourite destinations include New York, Miami, Paris and London.
“Luxury brands that have an affinity with the arts have a head start with these wealthy Brazilians,” said Ko. “Brands with limited edition products that are sold in ventures with artists, or sponsoring special cultural events all resonate with these people.”
