Empowering Brazil's Economy Through Small Businesses and Favela Entrepreneurship

Small businesses are pivotal to Brazil's economy, encompassing 97% of all companies and benefiting over 96 million people, according to the second edition of the Atlas dos Pequenos Negócios by Sebrae. Micro and small enterprises generate eight out of every ten formal jobs, illustrating their critical role in job creation. Notably, in August, these enterprises were responsible for over 124,000 of the 147,300 new jobs formed. Entrepreneurs like Raquel Pacheco and Joana Peixoto exemplify resilience and adaptability, having navigated pandemic challenges and workforce training, respectively.

Sebrae has committed R$ 2 billion to support small businesses through the Fundo de Aval às Micro e Pequenas Empresas, facilitating access to credit crucial for overcoming growth barriers. As part of Brazil’s Micro and Small Business Day on October 5, Sebrae launched the “Compre do Pequeno” campaign to encourage consumer support for local entrepreneurs.

Complementing this national effort, the publication “Descubra a Favela - Um guia para viver as favelas de dentro” connects tourists directly with entrepreneurial initiatives in six favelas of Rio de Janeiro. Developed by Instituto Aupaba, the guide spotlights projects like “Nós do Crochê” and “Favela Orgânica,” which promote social transformation and sustainability. Research by Instituto Data Favela shows that about 40% of favela residents own small businesses, underscoring the entrepreneurial spirit within these communities. Luciana de Lamare, Instituto Aupaba’s president, highlights the guide’s role in enhancing public perception and policy support for favela micro-entrepreneurs.

Together, these initiatives illustrate a diverse and vibrant small business ecosystem that fuels economic development and social empowerment across Brazil, from urban centers to marginalized communities.