Currently, Brazil has a debate about reforming social security and tax laws. Parallel to this discussion, the plenary is also taking an important step to make the economy freer in Brazil: the legal framework of startups. These small businesses with rapid growth potential and focused on problem-solving have grown a lot in the country in recent years: today, there are around 12,000. However, there is no security legislation for those who wish to invest in this area.
In an interview with the Millennium Institute, the Secretary of Industry Development of the Special Secretariat of Productivity, Gustavo Ene, spoke on the subject and explained how the Ministry of Economy is working to make the business environment in Brazil more attractive for This type of investment. “Today, the model is not good for those who want to open a startup. Our goal is to simplify the process, reduce regulation and bureaucracy horizontally, and facilitate the attraction of investments and reduce barriers. We want to promote disruptive and innovative business models, generating great value,” he said.
According to Jan, an important measure to take is the reduction of regulation on this type of company. “When you start a startup, it’s like a micro or small business. Born in Simple, and this prevents large fund investors from raising funds because if it does, the company will no longer be part of this system. This is an example, but we are also working to reduce the tax limits at the place of birth, reducing the weight of the state on these highly risk-related entrepreneurs.”
Another action included in the project is to allow governments to hire new companies in projects to promote innovation. “As these companies are born with a smaller and thinner structure, we have to create an environment that allows them to bid for innovative public sector projects,” said Gustavo Ene.
Freedom MP was the first step.
The starting milestone may be one of the most critical steps, but this is not the first step in improving the business environment. The MP Economic Freedom also helped startups by reducing bureaucracy for low-risk investments. “The provisional measure took the weight off the state, reduced administration. This is essential for early-stage entrepreneurs, such as new businesses, so they can start their business better and focus on what matters: creating new products, services, market readings, or opportunities when getting involved in the industry. Invest time in value creation instead of solving tax, legal, or labor problems, “he said.