A recent Novo Outdoor Socials (NÓS) study shows that women run 60% of favela businesses in Brazil.
Conducted last August, the survey also highlights that most business owners are young and identify as Black.
The findings point to the big role of entrepreneurship in transforming these communities. Most favela businesses are new. Half of them have existed for only up to three years.
However, starting or maintaining a business isn’t easy. Many owners cite a lack of money as the biggest challenge.
To cope, 18% have turned to bank loans. As for the reason to start a business, 40% did it out of necessity.
These businesses usually impact at least ten people. Also, 35% of these ventures employ at least one other person.
Owners have various motives. Some aim for personal independence, while others want to be their own boss.
When it comes to income, nearly half make between R$2,000 and R$4,000 a month.
The businesses are diverse, ranging from food to clothing, and 28% of owners have another job.
The study also looks at customer behavior. Most customers use banks and prefer paying in cash or using Pix. This information is useful for both financial institutions and suppliers.
Formal registration is another issue. Only 57% of these businesses have an official registration, known as a CNPJ in Brazil.
Among men, this number is a bit higher. Businesses in manufacturing are less likely to be registered.
Finally, the survey gives us a demographic snapshot. It reveals most business owners are Black or mixed-race, have completed high school, and are men.
Many live in the Southeast region of Brazil, are single, and are aged between 25 and 42.