With funding from the Ministry of Economic Affairs and Communications, Tehnopol has launched a new project to help Estonian technology companies enter two major export markets – the United States and Brazil.

Why the US and Brazil?

The US is the world’s largest economy and still the market with the greatest potential for Estonian technology companies. Customers are willing to pay for new solutions, and a single contract won there can grow a company’s turnover by more than a year of work on the home market. It is important to understand that the US is not one market: requirements, certificates and legislation, as well as sales culture and price levels, differ from state to state and region to region. The market is large and fragmented, and that is precisely why companies need support when entering it.

Brazil is the largest economy in Latin America and a rapidly digitalizing market where Estonian companies are still few. That means less competition and more room to grow – but also that entering the market without a local partner and an understanding of the business culture is very difficult. Business is conducted in Portuguese, and English is not a given in business communication. The business culture is strongly relationship-driven: trust is built in person, and meetings count for more than emails. This is exactly why a network of mentors matters so much here.

What the project offers

The project provides at least 40 hours of export market consulting, including help in finding and signing additional sales contacts and in growing export turnover in the target market, travel support of up to 2,000 euros to cover eligible direct costs of trips to the target markets, and access to the project’s mentor network.

Participation requires a financial contribution from the company itself: the company covers part of the eligible direct costs, and the remainder is covered by the project’s support, which is entered into the state aid and de minimis aid register as de minimis aid. The exact terms, including the split between the company’s own contribution and the support, are agreed with the company at the first meeting.

A total of 9 experienced mentors are involved in the project – 2 for the Brazilian and 7 for the US market. The mentors represent a range of sectors, and their expertise covers market entry strategy and business model adaptation, building a sales process in the local market, regulations and product requirements, finding partners and distributors, and building a local network.

Source: tehnopol.ee