GV #09 - Distribuição de Renda e Empreendedorismo

Welcome to GV9. Every time we hear something about income distribution we immediately associate it to some social program or some political rally speech. So before I go on, I just wanna make it clear that I am not affiliated with a political party.

I have no plans to run for public office. Least of all do I support a candidate through this channel. It’s true that the Geração de Valor project is a social project, a project that aims at sharing contents, sharing knowledge through social media such as YouTube, where you’re watching this.

But aside from YouTube, we also have Twitter and Facebook. But the big question out there is, What does entrepreneurship have to do with income distribution? We see it in the news, especially in recent years, the visibility Brazil has gotten abroad.

We have become the world’s seventh economy and we attract a lot of foreign investment in our local market. That’s because in the last ten years, according to a study conducted by Fundação Getúlio Vargas, more than 18 million people have gone from extreme poverty and more than 39. 5 million people have risen to middle class.

What does that mean? More than 57 million people have entered a new social level in which they can now consume, take part in events, entertainment, invest in culture, education, that is, we have 57 million new consumers. What does that mean, just so you get the picture?

That represents more than the entire population of Norway, Switzerland, Portugal, Spain, Chile, Argentina, and several other countries. In other words, every time people in lower classes rise to new social levels, that means new consumers are entering the market. In other words, that also means that there’ll be more business opportunities out there, especially for those who are willing to be entrepreneurs and turn their projects into reality.

We know the responsibility for the development of social programs is one of the government’s. However, when lower classes rise, everyone benefits, and I reckon income distribution must also be a common objective of every social layer, of the rich and the poor, entrepreneurs, enterprises, everyone will benefit from this social rise. Well, my objective with this video is to give three practical tips, three practical hints on how you can help out with the income distribution in the country.

The first one: sharing knowledge. Well, your knowledge is the result of your studies. It’s an asset you’ve received.

If you share your knowledge with someone, that’s a way to share that which you have and those people don’t. A lot of people, even in lower classes, are hardworking people, people who struggle, but, sometimes, dedicate themselves to projects that will not prove very fruitful. A lot of times they do out of ignorance.

Your information, your experience, your knowhow can make a great deal of difference in the lives of these people. As a matter of fact, that’s exactly what our objective is. I usually say that it’s better to give someone a fishing rod and teach them to fish than to just give them the fish.

That is, the very first thing you can do to help distribute income in Brazil is share knowledge. The second thing you can do to help distribute income in Brazil is become an entrepreneur, starting a business, creating a project. Micro and small businesses in Brazil respond for most of our country’s jobs, that is, every time you decide to start a business, you’re distributing income, as you’re investing in a project, generating job opportunities, generating riches for the country through taxes and also through opportunities for people in your business.

The third and last thing you can do to help distribute income in Brazil is a very simple thing, but it works miracles: tip. That is, when you tip someone, you’re not just giving out money, that’s a gesture that says you acknowledge their work. For instance, you go to a restaurant, you pay your 10% gratuity.

In the United States, for example, between 15% and 20%, the same gratuity. Now let’s think together: if a gas station attendant, after a long hard day, has serviced the cars of more than 200 clients, if he received 50 cents from every client, as acknowledgement for his work, he will have amassed $ 100 at the end of the day. That is, at the end of the month, this gas station attendant may have amassed more than $ 3,000, which is a lot more than your usual gas station attendant’s wage.

Now let’s suppose that is a reality. What would this gas station attendant do with that money? He would certainly give his family access to education, health, he would consume more, that is, this gas station attendant would become one more consumer in the market.

Now picture every gas station attendant, every waiter, every manicurist, everyone who provides services to you being acknowledged by you and everybody else. Let’s imagine a wave, a tipping culture. Millions and millions would be injected into our economy, which would represent new consumers and growth for everybody and for the country.

I have just shared with you three practical ways for us to help the government in its challenge to distribute income in our country. This is our goal here on Geração de Valor: to inspire, to encourage, and to challenge you, above all, to put those concepts to use. That’s all, everyone.

See you next time!