“Don’t Bring Me Problems, Bring Me Solutions!” Believe me, they can be found in micro and small enterprises

Abstract

Objective of the Study: To highlight the central role of micro and small enterprises (MSEs) in overcoming Brazil’s severe socioeconomic inequality, emphasizing the need for them to receive priority treatment in public policies. Main Findings: By emphasizing the often unknown and neglected reality of MSEs, it demonstrates that productivity is the main challenge, as most MSEs operate with extremely low productivity levels in an environment of informality/semi-formality. This exacerbates the country's productivity dilemma, limiting its growth potential and the possibilities to overcome inequality. The study also shows that although both formal and informal MSEs represent the most significant portion of the economy in terms of GDP and employment, they are treated marginally, receiving little attention from the government, academia, and the media in proportion to their economic importance. Relevance/Originality: It provides an original critique of the common view that reduces entrepreneurship to the creation of new businesses, treating it as a panacea for national problems. Instead, it proposes the requalification of existing entrepreneurs and support for innovations that increase the technical content of workstations (modernization of production and management processes), leading to higher productivity and competitiveness for MSEs. Social Contributions: It suggests the formulation of policies of public policies that place MSEs at the core of the agenda, which would foster an inclusive and sustainable development process. Furthermore, it emphasizes the urgent need for more studies on MSEs and informality to properly understand the reality of this vital segment of the Brazilian economy.