Small Businesses Drive Local Economic Growth with Strong Support from Programs like Proampe
Small businesses in Brazil are key drivers of job creation and local development, supported by programs like Proampe and tax policy reforms.
- • Small businesses make up 92% of Brazil's formal businesses and created 77% of new formal jobs in five years.
- • Proampe program in Porto Velho offers accessible microcredit and training to strengthen local entrepreneurs.
- • Simples Nacional tax regime challenges exist, with efforts underway to integrate it into new tax reform.
- • Collaboration between Sebrae and Tribunal de Contas enhances local development policies.
Key details
Small businesses are playing a pivotal role in Brazil's local economic development, creating a substantial portion of formal jobs and benefiting from tailored government initiatives. Bruno Quick, technical director of Sebrae Nacional, highlighted at the IV Congresso Internacional dos Tribunais de Contas that approximately 23 million formal businesses exist today in Brazil, with 92% comprising small businesses responsible for 77% of formal job creation over the past five years. Impressively, 700,000 new jobs were generated in the first half of this year alone, with 75% filled by Bolsa Família beneficiaries, illustrating small businesses as crucial pathways out of social welfare programs.
Quick emphasized the importance of tax policy for small enterprises, noting challenges with the current Simples Nacional system and the need for its integration into Brazil’s ongoing tax reform to ensure these businesses retain benefits. He also drew attention to the potential impact of transitioning to destination-based taxation on local economies, urging strategic fiscal planning. Additionally, he revealed that while small businesses constitute 70% of government suppliers, only 25% of public procurement value returns to them, indicating an opportunity for enhanced local economic support.
Complementing these national perspectives, the Programa de Apoio às Micro e Pequenas Empresas (Proampe) in Porto Velho exemplifies direct support for small entrepreneurs. Proampe offers accessible microcredit—often difficult to obtain through traditional banking—along with consultancy, training in management, marketing, finance, and innovation to foster business sustainability and growth. According to the Porto Velho city government, this program significantly boosts job creation and strengthens the local economy. Jaqueline Rego, a credit agent, encourages entrepreneurs to seek guidance at the Sala do Empreendedor at the Sine Municipal building to access Proampe’s services.
Together, these insights demonstrate how small businesses not only underpin job creation and economic vibrancy across Brazil but also how coordinated support programs and carefully designed fiscal policies are essential to empower these enterprises and maximize their local development impact.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.