Fundação Getulio Vargas has conducted a study in the largest communities of the city of Rio de Janeiro to learn which type of service offered by Sebrae/RJ (guidance, consulting, courses, and workshops) have a significant effect on the compliance rates of individual micro-entrepreneurs (MEI). According to the survey, MEIs assisted by the institution tend to comply less than those who have built up their businesses on their own.

The survey covered the period between March 2012 and November 2015, when 20,191 MEIs were assisted. The survey was conducted by PhD candidate Anna-Katharina Lenz and professors Cesar Zucco Jr. and Rafael Goldszmidt, from FGV’s Brazilian School of Public and Business Administration (EBAPE).

The survey indicates that the services – particularly the guidance sessions – lowered compliance rates regarding the monthly MEI contribution by 15% during the guidance sessions, on average, and these results were maintained even after the service was completed. According to Lenz, this finding highlights the importance of the individual approach of Sebrae’s technical experts to assist business owners at the service centers within the communities.

“This is the first time that a scientific study proves, with methodological rigor, the excellent work of Sebrae/RJ to support micro-entrepreneurs to carry out formal activities in the communities of Rio de Janeiro,” said Lenz. 

The survey noted that women account for most timely payments (53%); the average age of surveyed entrepreneurs is 40; and apparently there is no relationship between the entrepreneur’s financial capacity and the payment of the MEI Simplified Collection Document (DAS-MEI).

According to Fabiana Xavier Ramos, an analyst from Sebrae/RJ, continued guidance has the greatest impact on compliance rates and the search for training. “The results of the study made it clear that it is necessary to build an individual and scalable service model, considering that this audience needs some assistance to start operating (even before accessing training content). This is a major challenge”, she said. 

Anna-Katharina Lenz also points out that the next question is how to increase the formalization of small entrepreneurs. “Ongoing studies at Complexo da Maré seek alternatives to further enhance the future activities of Sebrae/RJ and improve their efficiency and cost-to-benefit ratio”.