Incentivizing Small Businesses To Go Formal In Slums Makes Retirement Possible

There are approximately R$80 million that circulate in the small business economy within Brazilian slums, known as favelas. More than twelve million slum inhabitants are responsible for this recently studied niche of the economy according to research by Data Popular used by Sebrae – a Brazilian support service for micro companies and small companies. Flávio Maluf, tells us about the initiative in the Favela Legal project.

 

The Favela Legal project proposes stimulating entrepreneurship in the two largest slums of São Paulo – Paraisópolis and Heliópolis – because of the high number of small companies that are in the slums. You can find pharmacies, grocery stores, and all kinds of stores in the slums. Slums are considered cities that have an informal economy.

 

The informality of the economy is an important point to be looked at. One of the main objectives of the Favela Legal project is to include small store and company owners in the social security system, and register their years worked so they can retire. Flávio Maluf states that the initiative is important to increase state income by formalizing the companies through the MEI program which is directed to formalizing the individual micro-entrepreneur.

 

One of the measures of the Favela Legal project is to enable businesspeople living in the slums through the MEI qualification programs. The intention of this project is to provide them with solutions from Sebrae – such as SEI programs that teach people to sell, control their money and plan things.

 

Flavio Maluf points out that Brazilian President Michel Temer likes the ideas of this project very much and he feels this project should be stimulated since all great entrepreneurs started with a small company.

 

The Favela Legal is a test project in São Paulo and should be taken to other parts of the country. Projects like this and other business reports are often studied and promoted Flávio Maluf. As the president of Eucatex companies, holding a degree in Mechanical Engineering from FAAP in São Paulo, Brazil and having studied Business Administration at New York University, Flávio Maluf frequently promotes political and business synergy news. https://br.linkedin.com/in/flavio-maluf-172147b3

 

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