Brazil already has more than 5 million microenterprises, which now account for a large part of the country's economy. The increase in Brazilian income in recent years has favored the emergence of new, smaller businesses, mainly in the trade and services sectors.
Some of the advantages of having a micro-business in Brazil include reduced costs, less bureaucracy and advantages in bidding processes. If you are planning to have a business of this size, check out some of the benefits:
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1) Less bureaucracy
2) Advantage in bidding
3) Agility in decision-making
1) Less bureaucracy
One of the great advantages of opening a micro-business is that the bureaucracy is much less than that of larger businesses, since a series of procedures are simplified. First, there is the Simples Nacional, a regime that guarantees differentiated tax treatment to micro-businesses and small businesses. A series of federal, state and municipal taxes (IRPJ, IPI, CSLL, COFINS, PIS, INSS, ICMS and ISS) are paid in a single collection, making collection much easier.
Also to facilitate the administrative processes of micro-enterprises, social security and labor obligations are simplified. Among the advantages of micro-enterprises are the exemption from the need to report collective vacations to the Ministry of Labor and Employment and the lack of need to post a Work Schedule (no need to record the entry and exit times).
Reducing bureaucracy, in addition to simplifying and streamlining internal processes, also greatly reduces the cost of maintaining the company. Less bureaucracy means fewer employees having to work to comply with government requirements.
2) Advantage in bidding
Despite having fewer resources, smaller companies often compete unequally with larger ones. To prevent this from happening, the Government guarantees a series of advantages for micro and small companies in bidding processes.
Unlike large companies, micro-enterprises can, for example, participate in a bidding process even if they are not up to date with their tax obligations, and can regularize their situation canadian consumer email lists in two days if they are the winner of the contest, that is, the dispute. The law also creates a “virtual tie” if the micro-enterprise’s proposal is, depending on the type of bid, 5 to 10% more expensive than that of a large company.
The objective of these and other measures is to create a more favorable scenario for small businesses, stimulating entrepreneurship and improving the Brazilian economy.
3) Agility in decision-making
One of the advantages of micro-enterprises over larger ones is their agility. Decisions within a micro-enterprise can be made much more quickly, as they have a much greater capacity to change course if necessary. This can be especially useful in more difficult times.
Likewise, it ends up being easier to identify problems and solutions, since the number of internal processes is much smaller. In a cash flow projection , for example, you can easily identify which expenses should be cut and where it is best to invest at the moment, a process that can be slow and complex in a large company.