Tax Reform Simplification Poised to Boost Productivity in Brazil's Small Businesses

Maurício Juvenal, National Secretary of the Business Environment at Brazil's Ministry of Entrepreneurship, Microenterprise, and Small Business (MEMP), highlighted the positive impact of the recent tax reform on small businesses during the 1st National Transparency Forum (FNT 2026) in São Paulo. The reforms aim to simplify tax obligations by reducing accessory duties and implementing practical platforms using open data and open banking starting in 2027. This simplification is expected to improve productivity, especially among small enterprises, which constitute 95% of the country’s 26 million businesses but contribute only 35% to Brazil's GDP — a figure notably lower than China's 65% from small businesses.

Juvenal stressed the importance of enhancing market access and addressing productivity gaps for microenterprises and individual microentrepreneurs (MEIs). He also emphasized the need for digital literacy among small business owners and mentioned MEMP’s prioritization of integrating artificial intelligence to bridge technological divides.

Complementing these policy efforts, Sebrae Ceará has been actively supporting small businesses through capacity-building initiatives. In collaboration with Sala do Empreendedor de Horizonte, Sebrae prepared around 20 entrepreneurs for the second ExpoHorizonte trade fair near Fortaleza. Training focused on improving product presentation, customer service, and sales techniques, particularly benefiting sectors like crafts and the creative economy. Pedro Silva, regional coordinator for Sebrae, highlighted the importance of such preparation in helping entrepreneurs maximize sales and build lasting customer relationships. Joaquim Cartaxo, Sebrae Ceará’s superintendent, noted that connecting training to market access significantly enhances competitiveness and growth opportunities for small enterprises.

Together, these government reforms and local capacity-building efforts reflect a comprehensive approach to boost productivity, market integration, and technological adoption within Brazil's vast small business sector.