Business
December 16, 2025
How to turn passion into results
Lack of technical preparation and emotional decisions not supported by planning affect the survival of small businesses
Each year, thousands of Brazilians decide to open their own business, driven by the hope of financial independence or the need for subsistence. These entrepreneurs, mostly classified as individual micro-entrepreneurs (MEIs) or owners of micro and small businesses, are responsible for a significant portion of job creation in the country. According to Agência Brasil (2022), these companies were responsible for 71.7% of the total jobs created in the year.
However, the reality is harsh: Brazil also registers high rates of mortality of companies. According to the IBGE’s Demography of Enterprises (2022), among businesses created in 2017, about 37.9% remained active after five years – which means that more than 62% closed their activities in that period. The reasons are multiple, but a combination seems especially critical: lack of technical preparation and emotional decisions not supported by planning.
What leads a venture to survive its first years? This is one of the important questions in the field of management. Studies such as Drnovsek, Cardon, and Patel (2016) and Silva, Nassif, and Paiva (2023) cite entrepreneurial passion as a determinant in the chance of company success. However, passion, in isolation, has not proven sufficient to guarantee business survival.
Even in cases of strong emotional involvement, a lack of technical preparation can lead the business to impulsive decisions, disorganization, and, ultimately, to the premature closure of activities.
The adoption of managerial practices has been pointed out in the literature as one of the factors capable of minimizing the mortality rate of organizations (Calderon, Iacovone and Juarez, 2016; Bertolami, et al. 2018). This means that, even with dedication, the absence of financial management skills, strategic planning, and knowledge about taxes and processes tends to compromise the continuity of the business. Many entrepreneurs are not familiar with cash flow control, the calculation of contribution margin, or the structuring of the selling price — basic elements for sustainability.
This perception reinforces what studies by authors such as Zouain et al. (2011), Alvarenga (2016), and Peršič, Markič, and Peršič (2018) already indicated: management competence is an essential asset for the sustainability of micro and small enterprises. It is a competitive advantage that can define the destiny of the business.
The love for business can be what motivates the start of the entrepreneurial journey, but it is the mastery of management that sustains the business over time. This includes knowledge of working capital, strategic planning, finance, taxes, customer service, inventory control, and reading the external environment. When these skills are absent, even good ideas and dedication may not be enough to keep the business alive.
Excessive passion, lack of management
The reflection proposed here is direct: entrepreneurship requires more than courage and passion. In the second quarter of 2025 alone, 1,668,753 companies were opened, while 942,049 were closed, according to information from the Federal Government. This means that Brazilians are becoming entrepreneurs, either aiming for a better income or in response to the lack of formal job opportunities. In fact, data from the Global Entrepreneurship Monitor (GEM, 2023) identify the scarcity of jobs as a relevant motivation among early-stage entrepreneurs. In situations of vulnerability, entrepreneurship is an act of necessity, not just vocation. And precisely because of this, it needs to be supported with technical knowledge and effective support networks.
Normally these entrepreneurs start businesses based on their passions, on skills they possess, but without understanding the risk they are taking. Some stop being employees and invest the resources they received from years of work in a new venture. However, upon checking the number of closed businesses, more than 56% compared to those registered in the same analysis period, it is perceived that a significant part of these entrepreneurs become frustrated.
But there is a way out: the professionalization of management needs to be treated as a strategic element. More than investing in products or marketing, entrepreneurs need to invest in themselves — in their technical preparation and their ability to make informed decisions. Having a good product or service is only part of the equation. Without control, analysis, and systemic vision, any initiative runs the risk of getting lost along the way.
Within this context, it is fundamental to recognize that, even with access to content, many entrepreneurs need personalized guidance to apply concepts to their specific reality. Without generalizations, it is common for small entrepreneurs to believe they are capable of conducting all fronts of the business alone. In this pursuit, they resort to free content to supply what they deem necessary for company management. This practice, in itself, is not wrong, as there is a lot of important information available for free. The challenge is that, without technical knowledge, it is more difficult to define what is reliable and discern which content is actually necessary for the sustainability of the business.
It is important to highlight that strengthening management is a strategy not only for survival but also for growth. Well-managed companies boost the economy, expand job opportunities, and increase their competitiveness.
They are less vulnerable to external crises and more capable of reinventing themselves. Whether it is out of passion or necessity that many start to undertake, it is through management that they will continue. Loving what you do is important, but it’s not enough. Entrepreneurship requires preparation. And preparation is built with knowledge — solid, applied, and committed to the reality of those who undertake in Brazil.
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Who wrote this column
Mirian Batista
