According to data from research made by Boa Vista, the number of Individual Microentrepreneurs (MEI) in Brazil rose 13% over the previous three months. According to the report, the growth in the number of microentrepreneurs continues to happen due to the high unemployment rate in the country. Reflecting on the slow recovery of the economy, individual microentrepreneurship has become an outlet for those who have lost their jobs with a formal contract in the crisis.
The number of individual microentrepreneurs (MEIs) is already over 9 million, according to federal government data. This is the first time that the number of self-employed Brazilians has exceeded this mark. According to the IBGE, at the end of the quarter ended in August, self-employment reached 24.3 million people, the highest level ever recorded in the country.
The survey points out that Brazilians are undertaking by necessity, which is very different from starting an innovative company. Due to the gigantic number of 9 million microentrepreneurs, most open businesses come out of necessity and do not have a long life. Most companies close in 3 years, according to Sebrae.
So the growth in the number of microentrepreneurs is actually increased underemployment, forced entrepreneurship, and job insecurity.
