Black entrepreneurship in Brazil faces credit and formalization hurdles

Black entrepreneurship in Brazil is gaining prominence as a vital driver of income and autonomy, despite significant structural barriers. According to Sebrae, there are over 15 million Black entrepreneurs in the country, yet many face challenges regarding business formalization and access to credit. Data indicates that only 25% of these entrepreneurs have accessed credit, and more than 90% operate without a formal business registration (CNPJ), which limits their ability to participate in new markets.

To address these gaps, Sebrae is expanding training, business guidance, and market access initiatives. These efforts aim to improve management and facilitate the formalization of businesses, which currently see an average monthly revenue of approximately R$ 2,500.

In recognition of reporting on these economic shifts, the report ‘A força do Afroempreendedorismo’ by Rafael Dantas for Algomais has been named a finalist in the 13th Sebrae Journalism Award in Pernambuco. The report explores how businesses led by Black entrepreneurs in sectors such as fashion, gastronomy, and technology are transforming cultural identity into economic opportunity.