January 9, 2024

Interview with João Barbosa: “The country’s periphery is more mental than geographic”

Portuguese people who stand out abroad are helping to find out where business opportunities are and what kind of companies and activities the country can attract. An initiative that brings together Negócios and the Portuguese Diaspora Council.

1- What led you to leave Portugal?

In reality, I have spent most of my professional life, which has now spanned 34 years, living, or traveling in various countries. Initially, living abroad was driven by my international career while working for a multinational company. Later, when I became an entrepreneur, leaving Portugal had to do with the need to be mentally closer to the international markets where I wanted to operate. There were also family reasons, as I always considered it important to give my daughters the world and that they could benefit from an international education.

2- What advantages or disadvantages did being Portuguese bring you?

When you are backed by a large company or a large organization, nationality has no impact (neither positive nor negative). However, when this protection does not exist, stereotypes related to nationality of origin are sometimes found. Portugal needs to raise its reputation beyond the areas of tourism or football. When selling very specialized knowledge and services, sometimes the initial effort to overcome the barrier of the origin seal may be greater if you are competing with entities from other countries whose reputation is perceived to be higher. If you were selling tourist trips, perhaps the origin label could have a more positive impact. However, I must say that, so far, I have not suffered any losses from the origin. In fact, on several occasions, I would say that nationality was beneficial because it associates the Portuguese people with peaceful, hard-working people who are friends with different cultures.

3- What obstacles did you have to overcome and how did you do it?

Both business and personal life always have ups and downs. The most important thing is to believe in the path we have taken and have the resilience necessary to overcome obstacles. At a professional level, the strategy was outlined several years ago, and we have evolved through permanent validation of its suitability for the markets in which we operate. Over the years, we have had projects in very different countries, from Guatemala to China. The ways of working and the cultures of each of them are very different, and we have always been open-minded to accept differences.

On a personal level, family unity and synchronicity of goals have been very important. At home we are all united in a comprehensive view of the world and in the understanding that the more we see, the more we understand and that the more we understand, the more easily we adapt to the context in which we find ourselves.

4- What do you admire most about the country you are in?

The United Kingdom is the sixth largest economy in the world (measured in nominal GDP) and one of the most robust democracies in the world. This, in itself, translates into a day-to-day life with high levels of citizenship and opportunities. But there are several things that I would highlight and that I admire.

The first is the way politicians are held accountable. This is a very big difference, which I see, for example, compared to Portugal. I believe that the fact that there is a single-member electoral system can contribute a lot to this.

The second thing I admire is respect for taxpayers. Not long ago, I received a letter from HMRC (UK Finance) which began with “Dear Customer”. The United Kingdom treats its citizens fairly and there is great reciprocity in obligations and rights between the government and citizens.

The third aspect that I would highlight is the way in which companies are supported and the existence, once again, of a tax system friendly to those who invest.

A fourth aspect is related to education which, despite having suffered some impact with the departure from the European Union, is still a reference at a global level. For personal reasons, I have visited many Universities across the UK and I never fail to be impressed by their quality. Furthermore, the Academy has a very relevant connection with the business world and is decisive in British society.

Finally, I would say that it is a country very open to innovation and change. From music and art, to science, it is enriching to see how much is produced and accomplished.

5- What do you admire most about the company/organization you work for?

Being a judge in your own case is not very appropriate, but of course there are reasons to be proud.

We have an enormous geographic reach capacity and have already carried out projects in around 40 countries. Being able to reach markets as varied as African, European, and Asian with a micro-enterprise, I believe, is to be commended. On the other hand, we have also been successful in many different retail areas, from the retail of mass consumer products to pharmacies, or even in restaurants.

Another reason for pride is that we have innovated in our own methodologies for analysing and designing solutions, with in-house development of our own algorithms, with investment in time and resources in the computing area. Our Retail Design area has also evolved a lot, with enormous effort put into training our team.

But, of everything we can value, what I would highlight most is the enormous quality of our team, which has extensive experience in the areas of computing, research, and design, as well as its level of commitment to the company.

6- What recommendations would you give to Portugal and its entrepreneurs and managers?

Internationalize, internationalize and internationalize.

I often hear the complaint that Portugal has a peripheral geography, but I don’t think that’s really the problem. I consider that this periphery is more mental than geographic, especially because today the barrier of distance disappears through the digital forms of communication that are available. On the other hand, I also feel that sometimes the lack of size of companies seems to be a barrier, but, once again, this barrier is much more mental than real. If we at AIR&D can now reach 40 countries, surely the size of the company cannot be a barrier to expanding the business.

Internationalization is also another great advantage that is often camouflaged. When we want to enter markets abroad, we are forced to greatly improve our points of differentiation because international competition is very aggressive.

Finally, I would like to advise that there should be a huge concern with efficiency, which is one of the biggest problems facing the Portuguese economy and companies – despite us being among the people who work the most hours a day. Working more does not necessarily translate into producing more or better. Improving manufacturing, marketing and decision-making processes is perhaps one of the biggest national priorities.

7- In which sectors of the country where you live can Portuguese companies find clients?

Portugal produces the best engineers in all possible and imaginable areas of engineering, the best doctors and other healthcare professionals, the best creative people, and the best managers. From cooking to science, there is no shortage of Portuguese people with enormous professional skills. The world is undergoing great change, and the United Kingdom is perhaps one of the countries in the world that best welcomes diversity, innovation, creativity, and quality. Maybe that’s why I say that any company could succeed in the United Kingdom, as long as it brings an innovative proposal, regardless of the sector it is in, because the United Kingdom is a country with a very open market.

8- In which sectors of Portugal could companies in the country where you live want to invest?

Once again, I do not believe that there is a specific will (or lack thereof) in a given sector. Portugal must create optimal and competitive conditions for investments in any sector. We have excellent professionals in practically all areas, but then the economic and legal contexts are unfavourable. Excessive regulation, the lack of quick resolution by the courts, taxation that is unfriendly to taxpayers, such high and atomized taxes and fees, time-consuming licensing, etc., mean that, regardless of the sector, investors hold back their impetus.

In my humble opinion, Portugal could be a business paradise if the context conditions were substantially improved.

9- What is the competitive advantage of the country you are in that could be replicated in Portugal?

There are several that reflect what I mentioned previously. The Academy’s relationship with society and the business world, the Tax Authorities’ relationship with the taxpayer and the speed of justice are, at the context level, very relevant.

Then, there is another advantage that seems to me to be very interesting and that is the competitive capacity that British companies have in terms of Marketing, with an enormous capacity to leverage their international reach.

10- Do you consider going back to Portugal? Why?

In fact, I often travel to Portugal, where we successfully maintain part of our operations and, of course, also for family reasons. I would like, perhaps one day later, to return permanently, but I believe that for now it will be more useful for the company and for the family if I stay abroad.

Read the original article here.