Though already a top ten ccTLD in terms of active domains, global trends suggest we may see millions more .br domains registered.

There’s no perfect formula for predicting when a given country code will begin a pattern of natural growth, but there are some common ingredients:

  1.  Focus on entreprenuership
  2.  SMEs moving activities online
  3.  Increased availability of ccTLD

According to statistics from SEBRAE, an institute dedicated to supporting small businesses in Brazil, SMEs number 8.5 million, representing around 99% of all firms in the country.  Granted this percentage is high all countries, the extremity of the figure suggests Brazilians have a penchant for entrepreneurship.

The total number of businesses in a country is a more strongly correlated to ccTLD zone size than raw population.  For example, despite similar populations, Chile has around 5x more registered companies than Ecuador (1MM to 200.000).  Likewise, there are nearly 600.000 .cl domains registered, compared to fewer than 100.000 for .ec.

Observing the number companies and active ccTLDs for countries where such data is available, Toweb’s research suggests that an average ratio is around 1:1.  That figure applied to Brazil would mean another 4.5 million domains!

So what’s holding .br back?  The answer is primarily a low level of digitalization among SMEs in the country. A recent study published by Instituto Locomotiva, a Brazilian research firm shows that only 69% of small businesses polled use the Internet to go about their everyday tasks.  Among these businesses, 82% cite lack of understanding and cognitive limitations as the reason they have yet to “go digital.”

Through initiatives of SEBRAE and perhaps more importantly, organic trends towards a higher intenet penetration and literacy, things are starting to change among Brazilian SMEs.  We’re admittedly biased on this topic, but Toweb’s belief is that this will begin to manifest itself in the number of .br domains registered.

The .br registry does first-rate work and interested parties usually don’t have trouble registering .br domains. The “increased availability” criteria is nonetheless met for .br, based primarily on the fact that the number of registrars offering .br is growing.  In addition to accreditations being granted to GoDaddy and other industry leaders, reseller businesses such as Toweb have fostered the ccTLD’s entry into previously-underserved markets.

Are .br domains expensive or hard to find among the customers you serve?  Do you have an approach you believe will entice Brazilian SMEs to go digital?  If so, please contact us so we can help you get your share of the next 4.5 million .br domains.

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