Often, the biggest difficulty in managing an SME is the bureaucratic challenges that entrepreneurs face both when opening the company and in their day-to-day work. The Brazilian business environment is heavily influenced by the government, which ends up resulting in excessive legislation, high tax burdens, difficulty in accessing credit lines, among others. With this in mind, we have put together a list of 4 challenges that micro and small entrepreneurs face and tips on how to overcome them. Check them out:
Content
1. High tax burden
2. Excess of legislation
3. Difficulty in accessing credit
4. Lack of management preparation
1. High tax burden
Brazil's high tax burden can be seen as a problem for entrepreneurs. It generates a series of procedures and bureaucracy, taking a large part of the revenue. But is it possible, within the legal framework, to pay less taxes?
The answer is yes. Through tax avoidance, which can be defined as a legal way of paying less taxes and it happens with the use of studies, in-depth knowledge of tax legislation and simulations, which will help your company find the best tax regime, corporate structure, among other details, which can significantly reduce the tax burden.
Read also: MANAGEMENT GUIDE FOR SMEs
2. Excess of legislation
Despite the increasing reforms and the creation of exclusive canadian consumer email lists laws for micro and small businesses, they still face a major obstacle: the high number of laws in the country. Every day, new laws, tax obligations, among others, are changed or created, which ends up leaving many micro and small entrepreneurs without knowing what to do.
The tip is to use the services of an accountant, as the support of professionals in the field, who are always up-to-date, can make a big difference to your company. The accountant can help you from the beginning with the establishment of your business, assisting with the necessary agencies, drafting the Articles of Association in an appropriate manner and, later, providing ongoing monitoring of your business and the laws and regulations in force.
3. Difficulty in accessing credit
Access to credit in Brazil is basically through loans and financing from financial institutions. The biggest problem is that these institutions do not always have adequate lines of credit and end up having a lot of bureaucracy for micro and small business owners, which, due to the difficulty in obtaining credit, can lead to great frustration.