A scenario that we find in large, medium and small capitals across the country
The informal economy plays a fundamental role in many countries, especially in developing nations like Brazil, where a significant portion of the population depends on activities outside the formal sector for their livelihoods. Organizing informal work, developing an inclusive economic matrix and providing training for young people and entrepreneurs are essential steps in an institutional methodology to promote structural and sustainable economic growth, without sacrificing social inclusion in the country. Informal work, characterized by the absence of regulation and social protection, is a reality for millions of people around the world. Organizing this sector involves creating structures that recognize and integrate these workers, providing them with access to basic rights such as health, social security and safe working conditions. New technologies, Artificial Intelligence and the latest generation of internet, known as “5G”, increasingly represent the prevailing conditions for the expansion of structural unemployment. In Brazil, the informality rate, which is the percentage of informal workers in relation to the total employed population, stood at 38.7% in February this year, which represents 38.8 million people (IBGE, 2024).
As a result, there is a need to develop an inclusive economic matrix that embraces informal workers, through public policies that promote training for medium, small and nano-entrepreneurs, which is increasingly concentrated in the younger sections of our working-age population.
With this in mind, we present the Federal District (DF), firstly because it is easy to obtain population and regional development data and, secondly, because we understand that the DF’s prominence is not only concentrated as a geographic space for making political decisions at a national level, but also because of its outstanding relevance in the center-west axis, where there is a galloping economic and population development.
In the area we are presenting, there is a robust and diversified economy, with a significant consumer market which, according to data from the Federal District Research and Statistics Institute (IPEDF), covers 2.9 million people, with an average income three times higher than the national average. This potential is complemented by the metropolitan region, which already has more than 7.1 billion inhabitants, including adjacent municipalities in Goiás and Minas Gerais with a significant population contribution. This scenario makes the Federal District one of the country’s main development hubs, with a Gross Domestic Product (GDP) close to R$300 billion, IPEDF, 2020.
Socioeconomic Context and Public Sector Participation
The public sector has one of the largest shares in the Federal District’s economy, accounting for more than half of the local economy and employing almost 25% of the workforce. As a result, there is an almost natural dependence on the public sector. However, what we may consider to be positive has a counterpoint where the limitation on the development of private economic activities ends up being resented, thus reflecting a pressing need for public policies that encourage inclusion and economic equity.
The COVID-19 pandemic has exacerbated economic vulnerabilities, disproportionately affecting black women, especially in the 24-39 age group, as evidenced by the April 2020 Employment and Unemployment Survey. In view of this, the promotion of policies aimed at equal opportunities becomes even more necessary every day, especially in support of entrepreneurship and income generation for vulnerable sectors of the population, pointing to specific resolution niches, nano, small and medium entrepreneurs, with training policies for entrepreneurship, as well as for entrepreneurs.
The permit holder is an economic agent who inspires the local economy!
Permissionaires, nano, small and medium-sized entrepreneurs who operate under public authorization, have emerged as essential economic agents for diversifying and boosting the local economy. These entrepreneurs, often operating in free and permanent markets, on the streets and at major events, transport small volumes and food and need specific support to overcome the bureaucratic and financial barriers that limit their growth potential and their social security.
Complementary Law No. 123/2006, known as the General Micro and Small Business Law, and its subsequent modifications by Complementary Law No. 128/2008, introduced the Individual Microentrepreneur (MEI), facilitating the formalization of small businesses and social security inclusion (BRASIL, 2006). In the Federal District, the regulations are complemented by Law No. 5,547/2015 and Decree No. 38,554/2017, which organize and regulate the operation of fairs and economic activities in public spaces (DISTRITO FEDERAL, 2015; 2017). Even though there is a regulatory framework, it needs to be put into practice, because the living matter and the exhausting working hours mean that productive life is medium and short term, which could lead to an unprecedented social security deficit in a very short time.
Challenges and opportunities for permit holders
We believe that in these new times and advances in data technology, the challenges faced by permissionaires include the need for professional training, access to financing, lower rates in banking systems and compliance with legal requirements. This text seeks to provide new insights into the conditions of permission workers and the situation of their enterprises, as well as helping to point the way towards the qualification of nano, micro and small entrepreneurs in accessing public microcredit policies.
Methodology and implementation
After analyzing the behavior of this economic and social scenario, we can’t help but contribute, as professionals trained in the social area, to mitigating this problem by paying more attention and gathering data that includes georeferencing the enterprises and collecting demographic, socioeconomic and behavioral information. This approach will allow for a comprehensive analysis of the conditions and needs of permit holders, facilitating the development of more effective and targeted public policies.
On the other hand, we can propose the categorization of a possible approach is the distribution of the sample by quotas, reflecting the socio-economic diversity of the Federal District, with priority given to the regions most affected by unemployment. The data collection methodology using SOCIALSISTEMS to produce electronic records and questionnaires for public policies guarantees the accuracy and reliability of the information collected.
Using SOCIALSISTEMS as a support tool
The integration of the SOCIALSISTEMS tool, an advanced social data management and analysis platform, will enable real-time monitoring of field activities, facilitating coordination between interviewers and the data center. In addition, the platform will offer advanced analysis functionalities, making it possible to identify patterns and correlations that can inform more precise and targeted policy decisions.
The use of SOCIALSISTEMS will also guarantee the security and integrity of the data collected, providing a secure environment for storage and analysis. The platform will enable geospatial visualization of the data, making it easier to identify areas in greatest need of intervention and to continuously monitor the results of the policies implemented.
Conclusion
Permit holders play a crucial role in the Federal District’s economic matrix, contributing to the diversification and resilience of the local economy. Strengthening this segment through targeted public policies, professional training and easier access to financing is essential to promote economic inclusion and social equity.
Finally, this article sought to instigate the need to discuss public policies based on empirical evidence, considering that managers need a robust and unprecedented database on permit holders to facilitate decision-making. The crisis caused by the COVID-19 pandemic highlights the importance of effective and transformative interventions that can mitigate the economic and social impacts on the most vulnerable populations.
