Microempreendedores

Microempreendedores are individuals who run small-scale businesses, often as sole proprietors, with limited revenue and typically a small team or none at all. They operate across sectors such as retail, services, crafts, and freelancing, and may work in formal, informal, or semi-formal arrangements. Microempreendedorship is a common pathway to generate income, create jobs, and test business ideas, especially in local markets and communities.

In several countries, governments have created simplified regimes to encourage the formalization of these ventures. Brazil’s Microempreendedor Individual (MEI) is a notable example, offering a simplified tax and reporting framework that allows individuals with a limited annual revenue to register, formalize their activity, issue invoices, and access social protections such as retirement and sickness benefits. The MEI regime also permits hiring a small number of employees and reduces administrative complexity compared with regular regimes. The specific rules, including revenue caps and eligible activities, are defined by law and periodically updated.

Impact and challenges: Microempreendedores contribute to local economies by delivering goods and services that may be underserved by larger firms and by providing flexible employment opportunities. They often face constraints such as limited access to finance, regulatory changes, and exposure to market fluctuations. The rise of digital platforms has expanded opportunities for reaching customers and scaling operations, but ongoing compliance with tax and reporting obligations remains an important consideration for sustaining a small business in the long term.