The Government Of Brazil Provides Babysitter Services For Shoes, Clothing And Other Small And Medium-Sized Enterprises.

At present, small and medium-sized enterprises are becoming the driving force for the rise of new countries. Many reports confirm this formulation vividly.

In these countries, due to their support from the government in terms of capital and tax revenue, the government has promoted its rapid growth and become the largest area of employment.

And their pioneering and innovative spirit is also in manufacturing and small commodities.

In Brazil, small enterprises have provided most jobs in the country, especially in the economic downturn, attracting large numbers of employees who were dismissed by large enterprises, and played an important role in stabilizing social and economic development.

In order to help small businesses start and develop, the Brazil government has adopted the establishment of micro enterprise service stations and the introduction of "micro enterprises".

More than half of the employees are below 50.

Brazil does not have a legal standard for the scale of enterprises, and the standards of government related institutions for micro enterprises, small enterprises and medium-sized enterprises are often not uniform.

Brazil's national economic and social development bank believes that the annual turnover is less than 900 thousand Real (600 thousand dollars) for the micro enterprise, between 900 thousand to 7 million 800 thousand Real (5 million 200 thousand U.S. dollars) for small businesses.

The two divisions were 120 thousand Real ($80 thousand) and 1 million 200 thousand Real ($800 thousand) in the federal tax bureau respectively.

Brazil micro enterprise support service station is determined according to its service objects. The manufacturing enterprises are 20 or less micro enterprises, 20 to 100 are small businesses, 10 of the business and service enterprises are micro enterprises, and 10 to 50 are small businesses.

According to the data released by the National Geographic Statistics Bureau at the end of August this year, about 52% of the fast growing enterprises in China were 10 to 49 employees in 2008.

Service stations and integrated systems help enterprises develop

The 39 year old Brazil micro enterprise support service is a public private partnership non-profit organization to encourage Brazil micro enterprises and small businesses to start their own businesses, participate in competition and achieve sustainable development.

The service station has 788 reception points in Brazil, providing targeted services to enterprises around the country.

Assist small business owners in obtaining capital, technology and market to enhance their competitiveness.

There are three main tasks in the service station: first, entrepreneurship courses (including remote correspondence) and lectures, various consulting services, and information on enterprise management, marketing, financing and so on.

Two, as an intermediary platform to help business owners contact participants, participate in exhibitions and visits, help small businesses find partners and customers; three, help small businesses contact various financial institutions and effectively reduce various barriers in the process of enterprise financing.

The reason why service stations can last forever and play a role is largely due to the Brazil government's special tax policy for micro enterprises and small businesses, the most important of which is the "micro enterprise tax payment integration system" introduced in 1996.

Brazil is one of the most heavily taxation countries in South America. There are 58 kinds of taxes, far higher than those in the United States.

The small businesses that integrate into the system pay monthly corporate income tax, social integration plan fee (i.e. employee bonus reserve), social security tax, industrial product tax and social insurance fund, which not only lightens the burden of tax on the federal level of small enterprises, but also simplifies the declaration and payment links.

Luis Cunha, Professor of economics at Rio De Janeiro Catholic University, said in an interview with reporters that the integration system allowed the taxation of small enterprises to be normalized, so that all kinds of business practices comply with the provisions of laws and regulations, and achieve a virtuous circle and rapid development.

Brazil also introduced the small business law in 2004 to further simplify taxation procedures and administrative procedures, facilitate small business financing, and help small businesses acquire government procurement orders, export business opportunities and new technological means.

In 2007, the upgraded version of the "super integration system" of the integrated system will include 6 categories of federal tax, 1 state government tax and 1 municipal government tax, which will further facilitate the start-up enterprises.

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Human resource costs are hard to recruit.

In order to understand the survival status of small businesses in Brazil, the reporter visited Zhou Yongchang, an overseas Chinese car company.

Zhou Yongchang, 47 years old, was born in Hongkong. When she was 10 years old, she came to Brazil with her family. Since then, she has settled down and naturalized in Rio De Janeiro.

At the age of 21, he chose to start a car repair business independently.

Now, 26 years later, his car business already has a service area of 900 square meters and a parking area of 4500 square meters, with an annual turnover of more than 2 million real ($1 million 330 thousand).

There are 25 local staff who repair more than 30 different types of cars every day.

Zhou Yongchang is satisfied with the current operation and external environment of the car bank.

In terms of tax burden, he said he was the beneficiary of the integrated system.

Now he goes to the bank once a month to pay the employees' social security and all taxes and charges. The cost of the car's taxes and fees accounts for 20% of the annual turnover. This is the proportion he feels acceptable.

"With the integration system, things become simpler, so that I can save money and save worry."

In terms of financing, Zhou Yongchang has made many purchases in the form of long-term installment through the years of cooperation with auto parts and maintenance equipment suppliers, thereby saving a lot of cash flow.

In contrast, employment is a matter of concern for Zhou Yongchang.

He said, on the one hand, the entry threshold of the automobile repair industry is relatively low, but the requirements for professional and technical skills of employees are very high. On the other hand, the unemployment rate in Brazil is relatively low, and it is difficult to find excellent professional car repair personnel on the market. Once found, it is necessary to retain high salaries, and at the same time, require regular staff training.

At present, the cost of staff salaries and training will cost 35% of the annual turnover of the vehicle industry.

In Zhou Yongchang's view, although Brazil's economy has been growing strongly over the past few years, its economic base is still fragile. Once the United States and other major economies are fluctuating, Brazil will be more affected.