The new coronavirus pandemic has caused entrepreneurs to rethink their routines and even their strategies to keep their business active. Small and medium-sized companies had to quickly adapt to the new reality imposed by quarantine and social isolation.
Several difficulties arose, such as operating in electronic commerce, which until then was not a reality for many of these businesses. In four out of every ten Brazilian companies, sales made through digital channels correspond to only 10% of your billing. To help these businesses in their time of extreme difficulty, several companies are collaborating. Check out:
Magazine Luiza and online sales
Magazine Luiza is using its expertise in online sales to help small businesses. The company launched Parceiro Magalu. “We did in five days what was planned to be done in five months”, says Frederico Trajano, president of Magazine Luiza.
The platform offers support for individual microentrepreneurs and companies with revenues of up to 5 million reais per year. Through Partner Magalu, entrepreneurs can register their stocks on the Magazine Luiza website and app, which connects them with more than 20 million of the company's customers.
Deliveries of products sold are carried out by the Post Office, at no cost to the retailer, but with a fee of 3.99% per sale until July 31st.
Braskem and the R$ 1 billion credit line
Braskem created a credit line of R$ 1 billion for the purchase of raw materials by its customers. The expectation is to serve at least a thousand small and medium-sized companies. For Edison Terra, the company's vice-president for South America, the loan limit will be R$ 600 thousand, based on each firm's revenue, with interest at the level of the basic interest rate, the Selic.
“We understand that this is an exceptional moment and not everyone is prepared. This measure aims to serve mainly customers with less credit capacity. This helps both those who are producing more with plastic products to combat the Covid-19 pandemic and those who are suffering from reduced demand”, says Edison Terra.
According to Braskem, this measure is possible due to its discipline in reducing costs and increasing zeal in investments during the petrochemical downcycle period. “We are able to offer this support to customers without compromising our cash flow, but we would like to invite our suppliers and partners to participate in this effort, which is essential for maintaining the industry and jobs”, says Pedro Freitas, CFO of Braskem.
Vale and the anticipation of almost R$ 1 billion in payments
Vale expects to anticipate R$ 932 million in payments to 3,000 suppliers by the end of April. Of this total amount, R$ 521 million has already been paid, which has benefited 1,694 small and medium-sized companies. In March, R$ 171 million were anticipated. The expectation is to inject more than R$ 411 million into the economy in advance payments by the end of this month.
“The last installment of the advance is scheduled for the end of April, when the total estimated value of R$ 932 million will be reached, which will reinforce the cash flow of small and medium-sized companies in the country. Vale's objective with this initiative is to use its presence at the base of the production chain and mobilization capacity to help suppliers face the impacts of the pandemic”, says the company.
Coca-Cola Brasil and the “We are in this together” fund
Coca-Cola Brasil and the Coca-Cola Brasil Institute created the “We are in this together” fund with the aim of combating the effects of the coronavirus crisis on the activity of recyclable material collectors. The fund's resources will be directed to non-governmental organizations and institutions linked to employability, access to water and recycling, which have already worked with Coca-Cola Brasil.
The company is focusing its actions on the emergency demands of professional sectors and the population that are most vulnerable to the consequences of the pandemic. This is the situation for collectors of recyclable products. According to the National Movement of Recyclable Collectors, the estimate is that between 800 thousand and 1 million workers in this activity had their entire chain affected with the reduction or stoppage of selective collection.
The fund will financially help around 11 thousand professionals, both cooperative and self-employed, to ensure that they can respect social isolation measures while preserving family income. Through institutions linked to the Coletivo Jovem program, which provides professional training to low-income young people, the company intends to combat the effects of Covid-19 in 71 communities, prioritizing urban regions, which are at greater risk during the pandemic due to high population density. .
