Productive inclusion of entrepreneurs in the digital age – 09/23/2022 – Papo de Responsa

Contemporary social problems are multiple and interconnected, therefore, they involve essentially interconnected economic and socio-environmental aspects. Added to this context is a scene marked by uncertainties aggravated by the lack of prospects for social mobility and dignified subsistence.

The study “Is the Social Elevator Broken? How to Promote Social Mobility”, conducted by the Organization for Economic Cooperation and Development (OECD), points out that the condition of poverty in developing countries is usually perpetuated by generations in the same family.

The so-called persistence of intergenerational income in the Nordic nations is 20%, while in Brazil it reaches 70%, making the country occupy the second worst position in social mobility in the global ranking.

The pandemic has added a greater layer of complexity to the income generation problem and catalyzed significant changes in the world of work and entrepreneurship.

Brazil has an entrepreneurial population estimated at 43 million people, of which 21% are early-stage entrepreneurs (in operation for 3.5 years or less). According to the GEM 2021 (Global Entrepreneur Monitor), 48.9% undertake out of necessity.

A considerable part of this contingent is formed by people in situations of social vulnerability, who find in the entrepreneurial activity an alternative for income generation.

The construction of possible futures –which talk about the fight against inequality and poverty– goes through a concept (and a mission): productive inclusion, with a focus on entrepreneurship, as part of strategies to boost opportunities for generating work and income .

One of the challenges, associated with low social mobility and the mishaps of entrepreneurship, is the digitization of the economy.

As a starting point to think about productive inclusion in a critical way, we need to see the convergences between entrepreneurs, especially those out of necessity: low business productivity, low digital literacy and often insufficient and unstable income.

In order to build a more qualified reflection, we must think about how to enable nano, micro and small entrepreneurs to improve the management of their businesses – through the digitization of processes, given the central role of new technologies in the economy –, with increased productivity and income. ; in addition to promoting a more equitable entrepreneurial ecosystem.

With these issues of grassroots entrepreneurship, Artemisia, within the Productive Inclusion Coalition, conducted the unprecedented exploratory study “Productive Inclusion of Microentrepreneurs in the Digital Era: Challenges and Possibilities for the Generation of Decent Income through Grassroots Entrepreneurship in Brazil”.

The work was supported by Accenture, Fundação Arymax, Instituto humanize, Meta, Potencia Ventures, Fundação Casas Bahia, Instituto XP, Lenovo Foundation, Fundação Tide Setubal and B3 Social.

Specialists, organizations, institutes, thinkers and protagonists of nano, micro and small Brazilian companies contributed to this analytical journey on the pains, opportunities and possible transformations of productive inclusion via entrepreneurship.

Brazil needs to foster a strategic alliance formed by third-sector organizations (which work with the theme), entrepreneurs, governments, social actors and partners in favor of a better understanding of the challenges and possibilities for productive inclusion.

This reading must be done with a multidimensional lens, capable of capturing the multiple complexities involved in the theme, so that productive inclusion gains space on the public agenda, becoming a definitive part of the country project.

Here, the invitation for readers to access the full study of the Productive Inclusion of Microentrepreneurs in the Digital Era.

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