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ENTREPRENEURSHIP, FORMALIZATION AND MICROCREDIT IN BRAZIL: ACHIEVEMENTS AND CHALLENGES IN THE EARLY 2000s

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This article analyzes the reach of productive inclusion via entrepreneurship in Brazil, through Individual Microentrepreneur (MEI) formalization program and microcredit. Moreover, we estimate the effect of microentrepreneurs formalization and of having been interviewed for the Unified Registry for Social Programs (CadÚnico) in the chances of obtaining microcredit. The results show a positive and significant effect on the probability of having received microcredit in all model specifications. This means that the probability of a microentrepreneur having received microcredit, other factors remaining constant, increases if he or she is registered as a MEI. Furthermore, if the person was interviewed for the CadÚnico and is registered as a MEI, the probability of having received microcredit is even greater. However, the interaction with poverty showed a negative result. Due to the still low access to credit and greater difficulty for poor microentrepreneurs, it seems important to maximize the effects of the programs integration.

Image: ©IRD - CNRS - Sabine Desprats Bologna