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tHE CItY's potEntIal The Rio de Janeiro has the third best market among the 14 analyzed capi- tals. "The wonderful city" not only has a large market (2nd highest GDP), but also shows high potential for consump- tion, in which the B2Gov and B2B mod- els stand out: the municipal and state governments of Rio have the second largest public spending in investments and purchases of third party suppliers, both proportionally and in absolute numbers, reaching a total of more than R$ 6.5 billion. The city is also a concentration of large companies, with an average added value in the services sector of about US$ 1.2 million — sec - ond only to São Paulo and Vitória. Rio de Janeiro is also one of the most well connected centers in the country: local entrepreneurs can take advantage of having at their disposal two major airports (repre- senting 10% of overall flights in the 14 analyzed cities), a major port in the capital itself and a few others in near- by cities, which in turn are connected by one of the best road networks in Brazil, in proportional values. Finally, although it may increase its volume of loans, money is not a big problem for Rio; after São Paulo, the city is the second destination of the country's risk investments, with al - most 15% of the total. tHE CItY's CHallEngEs The main challenge of Rio's entrepre- neurs is dealing with the complex reg- ulatory environment of the city. Local property tax is the most expensive in the country and can reach up to 2.8% of the market value of the property. On top of that, entrepreneurs face a time period of almost three months to start RIO DE JANEIRO a business, and another 60 days to install electricity — the worst time of all analyzed capital — and, finally, the regional courts are among the most congested in the country, with build- up rates of 64%. "The Wonderful City" is also the second largest in the country and one of the world's top tourist des- tinations. This combination helps to explain the fact that the city has the most expensive square meter in the country, nearly R$10,000 on average. Also as a result of its size, has the country's largest urban 70