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Last year alone, the number of new companies in Brazil grew by 14% compared to the previous year, according to a survey of the sector. The highlight was the creation of individual micro-enterprises, also known as MEIs. More than 77% of the companies created were set up in this way.

One of the explanations for this predominance of MEIs is related to what is known as “entrepreneurship by necessity”. In other words, because they can't find a job with a formal contract, since unemployment has remained high, Brazilians are driven to start their own company. These entrepreneurs have in common the fact that they can't offer collateral, such as a property, to obtain credit, which makes it difficult to get a loan from traditional financial institutions.

If the Federal Senate approves PLS 212/2017, which amends the legislation on the Positive Register, and it is subsequently sanctioned by the President, more consumers and companies, especially individual micro-enterprises, will have access to loans and financing. The new CP will also help to reduce the banking spread, which means that credit will be cheaper for everyone. This model, called opt-out and successfully adopted in more than 70 countries, automatically includes consumers, with the possibility of leaving at any time.

According to Sebrae, micro and small businesses are the ones that generate the most jobs. With access to credit, these businesses are able to expand their market operations, stimulating the economy and generating jobs.

It's worth remembering that there are already initiatives aimed at individual micro-entrepreneurs and micro-entrepreneurs. Fintechs have occupied this space by intermediating credit for micro-entrepreneurs. The bureaus participate in this process by providing credit risk assessment in a balanced and exempt manner to all economic sectors, including micro and small businesses.

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By: Elias Sfeir President of ANBC & Member of the Climate Council of the City of São Paulo & Certified Advisor