Source: Financial Executives - São Paulo / SP - CAPA - 03/08/2010

São Paulo - Research released today shows that 20% of companies associated with the American Chamber of Commerce (Amcham) spend at least R $ 300 per year on bureaucratic routines in Brazil, considering expenses with employees, outsourced professionals and issuing documents. The survey, carried out by Ibope in 211 companies in ten major cities in the country, was released today. According to the study, carried out from April 28 to May 17, 36% of respondents pointed out that profits would be greater than at least 6%, if all the routines required by the government were removed.

In the evaluation of entrepreneurs, among the elements that could be adopted by the government to reduce bureaucratic obstacles are the increase in the efficiency of administration management, the end of redundancies, the quick penalization of offenders - to avoid corruption - and the unification of policies defined by the Union and adopted by States and municipalities. Another important factor, according to company leaders, is the re-creation of the Ministry of Debureaucratization. This indicates that respondents have little confidence that the current state structure will reduce barriers to processes that hinder commercial activities.

According to the survey, 78% of respondents point out among the bureaucratic obstacles the time required to fulfill such obligations with the government. For 77% of the companies, another difficulty is the need to issue different certificates and documents. For 63%, the costs caused by bureaucracy are also obstacles. In the assessment of 91% of respondents, there are bureaucratic conflicts that hinder the business environment.

The survey also questioned what are the bureaucratic requirements that most hamper business deals. Forty-three percent mentioned the documents, such as those that must be obtained from the Board of Trade or relating to changes to the articles of association. In the analysis of 39%, official requests related to accounting rules for operations deserve to be highlighted and, for 10%, the biggest problem is requisitions in real estate transactions that involve, for example, notary offices (such as certificates and certificates).

According to the Ibope / Amcham survey, 67% pointed out that the bureaucratic difficulties that hinder business are linked, in most cases, to federal standards and requirements. Another 20% are linked to the States and 7% to the city halls. For 77% of the companies interviewed, on the other hand, the excess of bureaucratic procedures could be reduced through the unification of actions between the federal, state and municipal spheres.

Impact on business

According to the evaluation, bureaucracy requires the hiring of lawyers, accountants and dispatchers, so that companies can get rid of obstacles. According to 57% of respondents, the need to hire these professionals has a negative impact on business. To 46%, the effects caused by the employment of these segments of professionals or technicians are high.

As an alternative to reduce bureaucratic processes, 89% of the companies interviewed invest in technology. In the opinion of 58% of companies, government control and inspection over companies in relation to bureaucratic requirements are excessive, while 21% believe that official requests are insufficient. On the other hand, among those who believe that government control is exaggerated, 77% say that the rules are used as an instrument of power. According to 35% of the companies interviewed, at least 26% of employees deal with bureaucratic routines on a daily basis.

Amcham's study and proposals will be sent to candidates for the presidency of the Republic, to serve as a subsidy to government programs. The research was carried out in the cities of São Paulo, Campinas (SP), Recife, Porto Alegre, Belo Horizonte, Curitiba, Brasília, Ribeirão Preto (SP), Uberlândia (MG) and Goiânia.

Ricardo Leopold