Over 5.4 Million People in Brazil Depend on Income from Micro-Entrepreneur Companies

RIO DE JANEIRO, BRAZIL – The income obtained as an individual micro-entrepreneur (MEI) is the only source of resources for 1.7 million families, as per the 6th MEI Profile survey, conducted by the Brazilian Micro and Small Business Support Service (Sebrae).

According to the survey, this means that 5.4 million people in Brazil, considering four people per family, depend on the income of a MEI.

The data also show that the average monthly family income of this segment has reached R$4.400 (US$1.100), slightly more than four times the official minimum wage.

The survey interviewed 10,339 individual micro-entrepreneurs between April 1st and May 28th this year in all Brazilian states.

According to Sebrae, the survey reached a 95 percent confidence level and one percent margin of error and outlined the main characteristics of these entrepreneurs.

The numbers show that the activity of individual micro-entrepreneurs is the only source of income of 76 percent of respondents.

According to the data, 61 percent of all formally organized MEIs were attracted by the benefits of registration (having a formal company, the possibility of issuing invoices, being able to make cheaper purchases), 25 percent because of the social security benefits, and 14 percent for other reasons.

“The results of the survey show that 33 percent of MEIs were informal (as entrepreneurs or employees) before choosing to register as micro-entrepreneurs. Of this group, 48 percent did business without a CNPJ (corporate tax ID number) for 10 years or more”, said Sebrae’s advisor.

According to the survey, formal registration was directly responsible for the increase in business sales for 71 percent of the respondents, while 72 percent indicated improvement in purchasing conditions with suppliers.

Young people, between 18 and 29 years of age, lead the ranking of those seeking financial autonomy as MEIs (41 percent). The percentage of micro-entrepreneurs falls as the entrepreneur ages; between 30 and 39 years old it is 37 percent, from 40 to 49 it is 32 percent and those over 50 years old register 21 percent, the survey states.

The data also show that 40 percent of those interviewed use their own homes as workplaces. The survey revealed that, in the poorest municipalities, it is more common for individual micro-entrepreneurs to work in a commercial establishment (49 percent).

“This option, in general, adds up to 28 percent, while the MEIs acting in a client’s house or business is 17 percent. Street vendors are 11 percent and those who act in fairs, popular shopping, and other places represent 4 percent”, the research concludes.

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