An Analysis and Comparison of the Brazilian and Canadian Economies
Monday, May 25, 2020
What are the differences between these economic policy roadmaps?
2019 saw both the introduction of new entrepreneurial polices in Brazil as well as the successful continuation of recently enacted reforms. For example, the country’s labour reform bills, effective since November 2017, have brought greater flexibility in employment contracts. Other policies have likewise been passed to make entrepreneurship easier, including approval of the provisional Measure of Economic Freedom, an act that includes policies such as the cessation of business licences for low-risk small business activities, in addition to the simplification of the national digital bookkeeping system for collecting taxes and social security obligations.
In the financial realm, the 2019 Empresa Simples de Crédito (ESC) act aims to increase access to finance for micro and small enterprises, while the Micro Empreendedor Individual (MEI) aims to formalize the microfinance system already adopted by 9.2 million micro entrepreneurs. Complementary to these policies, the Cadastro Positivo, effective July 2019, makes information on individuals’ defaults and payments easier to access for loan-granting organizations. This will improve trust and transparency among business owners (Read more…).