Brazil has at least 19 million nanoentrepreneurs, study finds

A study conducted by economist Fernando Blumenschein and commissioned by Natura reveals that Brazil has at least 19 million nanoentrepreneurs. This category, established by the country's tax reform, includes individuals engaged in small-scale economic activities, such as seamstresses, manicures, electricians, and street vendors, often to supplement income.

To qualify as a nanoentrepreneur, an individual must have an annual gross revenue of less than R$ 40.5 thousand, which is half the limit for Microentrepreneurs (MEI). However, app-based drivers and delivery workers have a higher threshold of R$ 162 thousand per year. Unlike MEIs, nanoentrepreneurs are not required to have a CNPJ (corporate taxpayer ID) or issue fiscal documents. Under the upcoming tax reform, this group will be exempt from the Goods and Services Tax (IBS) and the Contribution on Goods and Services (CBS) starting in 2027.

Of the estimated 19 million, approximately 15.5 million work independently without a CNPJ, representing about 60% of Brazil's informal workers. The remaining 3.5 million are registered. Socioeconomic data shows that 81.5% of informal nanoentrepreneurs earn up to two minimum wages, and 31.5% have not completed primary education. Regional disparities are notable, with high rates of informal nanoentrepreneurs in the North and Northeast regions.