Motivations and difficulties in the process formalization of the individual microentrepreneur: perception of the Paraiban craft market

Abstract

It is known that the formalization of an enterprise in Brazil is a very bureaucratic process, although some virtual tools regularized by competent bodies, such as Sebrae, have contributed to streamline the process of formalization. Given this scenario, the simplified scheme of the Individual Microentrepreneur (MEI) emerges as a favorable alternative to small entrepreneurs, and can easily carry out their registration through the portal of the entrepreneur. Thus, the aim of this study is to analyze the perception of artisans in the Paraibano Handicraft Market in relation to the motivations and difficulties faced in the MEI formalization process. To reach this goal, a questionnaire was applied to the merchants of the Handicraft Market of Paraíba (MAP), located in João Pessoa, Paraíba. From the answers obtained, it was possible to verify that 29% of artisans who are present in the handicraft market do not have knowledge about the formalization process as they are in informality, whereas among the formalized ones (71%), 43% indicate as the main motivation to formalize the reduction of taxes and 21% to the low bureaucracy. Regarding the difficulties reported, the lack of credit facility and the issuance of an invoice stand out.