MEIs had been those that closed their companies essentially the most in the course of the pandemic

According to a survey carried out by Sebrae with small businesses to understand the impacts of the pandemic, it was found that individual microentrepreneurs (MEIs) were the ones who closed their businesses the most, with 29% of them closed after five years of activity. Soon after, there are micro-enterprises (21.6%) and small businesses (17%). The most affected area was commerce and the smallest, the extractive industry.

According to Marcelo Pereira, manager of the Strategic Management Unit at Sebrae Rio, the study showed that many of these entrepreneurs started the business out of necessity. Therefore, they were unemployed and opened their own business.

reasons

Among the most cited reasons for closing the business are:

• Pandemic/Covid-19 (41%);
• Lack of money or funding (22%); and
• Lack of customers (20%).

However, among companies that did not close their doors, 37% identified an opportunity in the market. “Companies that are still in the market after five years have shown themselves to be more active in systematically improving their products and services to meet customer needs and in being always up to date with new technologies in their sector”, pointed out Pereira.

MEI

The Individual Microentrepreneur (MEI) is an individual entrepreneur, who performs economic activity in his own name. Thus, it does not have a social contract and cannot have a partner either. To be an MEI, you must meet the following requirements:

• Have revenue limited to R$ 81 thousand per year;
• Not to participate as a partner, administrator or owner of another company;
• Hire a maximum of one employee;
• Exercise one of the economic activities allowed to MEI.

The MEI does not need to do bookkeeping, however, according to its activity, every MEI needs to pay a monthly contribution. Through this single monthly payment, the microentrepreneur contributes to Social Security, collects ICMS and ISS.

MEI has access to social security benefits, such as retirement by age, maternity leave, sick pay, among others, in compliance with the grace periods.

Source