SME and Entrepreneurship Policy in Brazil 2020

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This publication presents the findings of the OECD review of SME and entrepreneurship policy in Brazil. SMEs play an important role for economic growth and social inclusion in Brazil, accounting for 62% of total employment and 50% of national value added. However, productivity gaps between SMEs and large companies are wider in Brazil than in the OECD area, which is also the result of low innovation and export propensity among Brazilian SMEs. Business ownership and business creation are common, but growth-oriented entrepreneurship is much less widespread.

Brazil’s SME policy is enshrined in the 1988 Federal Constitution, which grants to micro and small enterprises a preferential treatment in different policy areas (e.g. tax and labour law). Brazilian SME policies are, therefore, mostly aimed at this constituency, whereas mid-sized firms are largely missing in the national policy debate. Simples Nacional, a preferential tax and regulatory regime, is the main federal SME policy, but Brazil also operates a large number of targeted programmes for SMEs. This report provides policy recommendations to enhance Brazil’s SME and entrepreneurship performance, covering, among others, innovation policy, export support, access to finance, and women’s entrepreneurship.


The innovative start-up ecosystem in Brazil

This chapter describes and assesses the innovative start-up ecosystem of Brazil. This ecosystem includes many public and private sector entities which collaborate well with each other. Brazil also has a sound innovation policy legal framework in which priorities are well outlined. Nonetheless, the patent system is burdened by a heavy backlog, while research and development (R&D) tax credits are virtually not available to either start-ups or innovative small- and medium-sized enterprises (SMEs). There are quite a large number of specific programmes targeted at start-ups in Brazil. Business incubators, technology parks and accelerators are widely available and have generated positive results, while open innovation programmes look promising. On the downside, there are some redundancies among certain programmes and some of them are of a very small scale.



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