Small businesses contribute to poverty reduction in Brazil. Learn how

Approximately 14 million people across the country have risen above the poverty line in the last two years, according to data from the Federal Government's Single Registry for Social Programs. This means they surpassed the income of R$218, the amount that classifies them as within the poverty line and qualifies them for participation in the Bolsa Família program. One of the reasons for this result was the performance of micro and small businesses in creating new jobs, bringing the country closer to full employment.

A survey carried out by Sebrae, based on data from the General Register of Employed and Unemployed Persons (Caged), shows that in July of this year, around 80% of formal hiring in the country was done by microenterprises (ME) and small businesses (EPP) .

Small businesses have directly contributed to boosting job and income generation. This result is the fruit of a major effort by President Lula and Vice President Geraldo Alckmin. Entrepreneurship has been revolutionizing and transforming realities across Brazil, generating opportunities and inclusion.

Décio Lima, president of Sebrae

Décio Lima emphasizes that, month after month, the country is breaking new records in hiring. In the first seven months of the year, 853,800 jobs were created in micro and small enterprises (MSEs), with a particular focus on the Services sector, which recorded a positive balance of more than 430 thousand jobs, followed by Construction (161.1 thousand) and Manufacturing Industry (120.7 thousand) .

In addition to being hired by small businesses, the president of Sebrae notes, those registered in the Single Registry are also opening their own companies. A study conducted by Sebrae in partnership with the Ministry of Development and Social Assistance, Family and Fight against Hunger (MDS) revealed that approximately 30% of all individual microentrepreneurs (MEI) in the country are registered in the Single Registry.

The survey also identified that the predominant profile among this public is that of non-white people (63%) and females (55%), who represent the most vulnerable portion of the Brazilian population.

Protection rule

The criteria for access to Bolsa Família is a per capita income of up to R$218. When families exceed this amount up to the income limit of R$706 per person, they remain in the program for another 12 months, receiving 50% of the benefit.