RSS   Newsletter   Contact   Advertise with us

Brazilian government to support micro-businesses to generate jobs

Share on Twitter Share on LinkedIn
Staff Writer | October 28, 2016
The Brazilian government announced a series of measures to support small and micro-businesses, a sector that should be one of the axes of policies to combat unemployment, which stands at 11.8 percent.
Michel Temer
LatAm   To combat unemployment
The main measure in the package will allow some 680,000 small and micro-businesses to renegotiate debts which come due at the end of this year.

The government will establish a new deadline of 120 months for the cancellation of those obligations, a move designed to provide financial relief for an expanding sector, despite the serious economic recession Brazil has been experiencing for the past two years.

“We’re on the right road,” said Temer at the ceremony, emphasizing that, in this difficult economic scenario, small- and micro-businesses in the past two months created some 6,000 new jobs.

The announcement coincided with the release of new unemployment figures, which – according to the Brazilian Geography and Statistics Institute – has risen from 8.9 percent to 11.8 percent over the past 12 months.

According to official figures, at the end of last year in Brazil there were about six million small and micro-businesses, which have been responsible for creating some 15 million jobs since 2001.

Using the government criterion, a micro-business in the industrial sector is one that has up to 19 employees, while small businesses have between 20 and 99 workers.

In the trade and service sectors, small businesses are considered to be those with between 10 and 49 employees, while micro-businesses have nine or fewer workers.