Source: O Anapolis - GO, 08/07/2009

Public and business managers and leaders begin this Wednesday (1st) the task of putting into practice yet another achievement of the General Law of Micro and Small Business: the Individual Entrepreneur, a legal figure that promises to include millions of people in the formal economy. Government and Sebrae want to reach the goal of 1,1 million formalizations in the first year of work, until July 2010. The novelty benefits the much smaller businesses, those that are at the base of the business pyramid and earn, on average, R $ 3 thousand a month.

This is the case with Renivaldo Correia. He started producing pizzas informally at home and today sells about 800 units a day. You recently heard about the Individual Entrepreneur and you are already right: ”I'm going to head in. I need credit to grow even more and the formalization will help me to get financing ”, he says.

The hairdresser Leilza de Oliveira is also excited about the Individual Entrepreneur. Born into a family of informal entrepreneurs, the hairdresser followed the rule and, for eight years, has been working informally. For her, formalization meant "a lot of tax to pay and little profit to receive".

Renivaldo and Leilza live in Aracaju, but they could live in any Brazilian city, where the “face” and the difficulties of the informal entrepreneur are similar. Entrepreneurs from the capital of Sergipe are part of the universe of 11 million Brazilian professionals who live outside the law.

This reality can be seen in the 5.564 municipalities in the country, in its corners, squares, neighborhoods, shopping centers. These entrepreneurs generate income and drive the local economy. However, without corporate citizenship, they cannot improve their business, change their lives, or enjoy social security rights.

Qualitative research carried out by Sebrae with 543 informals shows that 70% of the interviewees consider formality to be more advantageous than informality. In addition, 75% say they are not afraid of formalization. The same survey reveals that the majority of informal workers are satisfied with the work they do, but face serious problems, such as lack of money to participate in training and training, financing to invest in infrastructure and publicizing their businesses.

Now, that can change. And the best: without bureaucracy and at a very low cost. For hairdresser Leilza de Oliveira, the fixed monthly amount to be paid (less than R $ 60) is symbolic given the possibility of obtaining retirement and acquiring conditions to grow in the market. “They remembered us”, he celebrates.

Profile

• According to the Informal Urban Economics Survey (Sebrae / IBGE, 2005),
64% of employed persons in this sector are male
36% have incomplete elementary education.
37% of informal business owners are between 25 and 39 years old, while 46% are between 40 and 59 years old.

• Differentials of the law

• Simplifies and cheapens formalization
Nationwide
Complementary law, which makes it legally secure
Serves the base of the business pyramid
Promotes social and economic inclusion