Innovation and formality: the impact of legalization of startups in Seridó

Abstract

This study focuses on the innovation and formalization of startups in the Seridó region, characterized as ventures aimed at solving social problems in innovative ways. This research explores aspects of innovation, legalization, government incentives, as well as the benefits and challenges these initiatives face daily. Startups, being a relatively new and challenging business model, struggle to find space in a market still largely dominated by traditional business practices. The relevance of this study lies in offering a prospective view of the startup market in the Seridó region, impacting social, economic, and legal spheres. By highlighting the inherent challenges in creating a startup, this work broadens local understanding of the topic, promoting a deeper discussion about the importance of innovation and formalization in this context. The research was based on a quantitative data survey conducted with SEBRAE and interviews with specialists in the field. It concludes that, although there is specific legislation and significant advancements in the region, the process of creating new startups is still in an evolutionary phase and in the corporate onboarding phase. We identified that the formalization of startups is crucial for the viability of potential resources and incentives, being essential for the continuity of these ventures. Furthermore, it was observed that the Seridó region has emerged as an innovation hub, second only to the state capital of Rio Grande do Norte. This positive trend indicates a promising path for the future of startups in the region, despite the challenges that still need to be overcome.