Favela’s Startup Nation: Entrepreneurship Born Amid Challenges

Photo by Christian Zambra

The 19th century marked a period of global change, with empires collapsing and wars brewing in Brazil. During the War of Canudos, a troop sought refuge in a mountain covered in ivy, plants, and trees. The tree that flourished with beautiful white flowers, but protected them with wild thorns, was named Favela. After the war, the troops returned to Rio de Janeiro and settled in a mountain, which they improvised into residences, called “Morro da Favela,” giving rise to the term.

Today, Favela is synonymous with low-income housing built without government support, representing a nation of 17.1 million people generating R$180 billion (USD 34 billion) per year.

I recently had the opportunity to mentor some Favela-based companies during the largest Brazilian event for this nation, Expo Favela, and was impressed by their resilience, the way they faced incredible challenges like the pandemic, and the advanced stage of their businesses.

In Favela, we’re not talking about high-risk dreams, but real-life problems with tested solutions in harsh conditions. Here are my thoughts on three Favela-based companies that impressed me the most:

1. Sorpriza (instagram — sorprizaoficial): Skincare Subscription Boxes. Sorpriza faces the challenge of collecting data, understanding consumer needs, and selecting the perfect product for each client in a subscription model. With paying clients already on board, this company has tremendous potential.
2. Gleicy Studios(instagram — gleicyalencar_): Luxury Beauty Services. Gleicy Studios deeply understands the market and clients’ needs, delivering luxury experiences to the Favela. The company has also developed a strong internal culture that allows for growth without compromising service quality, essential in the luxury business.
3. Quilombo Doces(instagram — quilombo.doces): Food. This company is a piece of Brazilian history, with “quilombo” referring to a settlement formed by escaped slaves, symbolizing resistance. Quilombo Doces brings the love of these people to life through their recipes, even in hard circumstances. They produce wonderful dishes that last until now.
4. Expo Favela showed me that the Favela is a startup nation, filled with entrepreneurship and successful stories born in the pandemic against all odds.