Business Credit: What Prevents Microentrepreneurs from Obtaining Support?

Access to the business credit It is a fundamental pillar for the growth of microentrepreneurs, but, paradoxically, many face barriers that seem insurmountable.

In Brazil, where entrepreneurship is a driving force of the economy, credit should be an ally, but it often becomes an obstacle.

Why? The reasons are multifaceted, ranging from a lack of financial education to restrictive credit policies.

This article delves into the causes that make access to business credit for microentrepreneurs, offering critical analysis and practical examples.

As well as an enlightening analogy and concrete data.

Prepare to understand what’s at stake and how to overcome these barriers.

1. The Complexity of Bureaucracy and the Demand for Guarantees

Imagine trying to climb a mountain without proper equipment: this is the feeling of many microentrepreneurs when trying to business credit.

Bureaucracy, with its endless forms, collateral requirements and rigorous credit checks, is one of the main barriers.

Banks and financial institutions often require proof of income, collateral and an impeccable credit history.

In this sense, requirements that many microentrepreneurs, especially informal ones, are unable to meet.

Furthermore, the lack of clarity regarding credit application processes discourages those who already operate with tight margins.

For example, consider Ana, a 35-year-old pastry chef who opened a small studio in São Paulo.

With a modest monthly turnover, she needed R$ 20 thousand to invest in new equipment. When looking for business credit in a traditional bank,

Ana was faced with the requirement of a property as collateral, something that she, as a tenant, did not have.

With no clear alternatives, she resorted to informal loans with exorbitant interest rates, compromising her profit margin.

This case illustrates how the requirement for real guarantees excludes microentrepreneurs who do not have accumulated assets, but have growth potential.

Furthermore, bureaucracy is not just a matter of documentation.

Credit analysis deadlines are often long, and interest rates, when credit is approved, may be disproportionate to the real risk of the business.

According to Sebrae, 60% of Brazilian microentrepreneurs give up looking for business credit due to the complexity of the process.

This statistic reflects a system that, instead of fostering entrepreneurship, creates barriers that perpetuate financial exclusion.

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As a result, many microentrepreneurs find themselves stuck in a cycle of stagnation, unable to invest in improvements or expansion.

2. Lack of Financial Education and Planning

Another significant obstacle is the lack of financial education among microentrepreneurs.

Without understanding concepts such as cash flow, profit margin or debt management, many struggle to present a convincing business plan to financial institutions.

Consequently, access to business credit is compromised, as banks prioritize applicants who demonstrate financial clarity and organization.

The lack of preparation is not just an individual failing, but a reflection of an education system that rarely prioritizes financial literacy.

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Let's take the example of João, a 28-year-old who opened a barber shop in Recife.

With a loyal clientele, he saw the opportunity to expand the business, but he needed business credit to rent a larger space.

When he submitted his application, John did not have a structured business plan, just informal notes about his expenses and income.

The bank rejected the request, citing a lack of clarity.

3. Credit Policies Misaligned with the Reality of Microentrepreneurs

Current credit policies often seem disconnected from the reality of microentrepreneurs.

Financial institutions tend to adopt a conservative approach, prioritizing businesses that are already established or have a greater capacity to offer guarantees.

However, microentrepreneurs often operate informally or in sectors with reduced profit margins, which puts them at a disadvantage.

So, the business credit available is rarely affordable or suited to your specific needs.

Furthermore, high interest rates are a significant impediment.

Even when credit is approved, the associated costs can make the investment unfeasible.

For example, a line of business credit with interest of 3% per month it may seem reasonable compared to loan sharks, but over the course of a year it represents a cost that eats up a large part of the profit.

Consequently, many microentrepreneurs choose not to seek credit, fearing debt.

On the other hand, initiatives such as Pronampe (National Support Program for Micro and Small Businesses) show that it is possible to align credit policies with the needs of microentrepreneurs.

However, the supply of these lines is limited, and competition is high.

Therefore, it is essential that the government and financial institutions develop more inclusive solutions, such as shared guarantees or guarantee funds, to reduce the risk perceived by creditors.

4. Business Credit: Informality and Lack of Access to Technology

Informality is a striking characteristic of Brazilian entrepreneurship.

Many microentrepreneurs operate without formal registration, which makes it difficult to prove income and build a credit history.

As a result, access to business credit becomes a challenge, as banks require official documentation and financial transparency.

Furthermore, the lack of access to technology exacerbates the problem, as many microentrepreneurs do not use digital tools to manage their finances.

Consider the case of microentrepreneurs in rural areas or urban outskirts, where internet access is limited.

Without tools like financial management apps or online credit application platforms, they rely on in-person processes, which are time-consuming and costly.

Thus, digital exclusion reinforces financial exclusion, creating a vicious cycle.

However, technology can also be a solution.

Fintechs, for example, have revolutionized access to business credit when using alternative data, such as transactions on card machines, to assess payment capacity.

These innovations show that it is possible to overcome the barrier of informality, as long as there is investment in digital infrastructure and technological inclusion.

5. The Role of the Public and Private Sector in Solving the Problem

Resolving barriers to business credit requires a collaborative approach between the public and private sectors.

The government can play a crucial role by creating public policies that encourage formalization and offer guarantees to reduce creditor risk.

For example, guarantee funds, such as Fampe (Guarantee Fund for Micro and Small Businesses), have the potential to expand access to credit, but their scale is still insufficient.

Meanwhile, the private sector, including banks and fintechs, must innovate in credit assessment.

Artificial intelligence-based models that analyze alternative data, such as payment behavior on digital platforms, can identify reliable microentrepreneurs who would be rejected by traditional methods.

Additionally, partnerships with organizations such as Sebrae can offer financial training, better preparing entrepreneurs to access the business credit.

Ultimately, society as a whole benefits when microentrepreneurs have access to credit.

They generate jobs, boost the local economy and promote innovation.

Therefore, investing in solutions for the business credit It is not just a question of social justice, but a strategy for economic development.

After all, how can we expect Brazil to prosper if those who drive its economy are left behind?

Frequently Asked Questions about Business Credit

Below is a table with answers to the most common questions about business credit for microentrepreneurs:

Business Credit: Conclusion

Access to the business credit It is a complex challenge, but not insurmountable.

Bureaucracy, lack of financial education, misaligned policies, informality and digital exclusion form a set of barriers that limit the potential of microentrepreneurs.

However, with inclusive public policies, private sector innovations and investments in training, it is possible to transform credit into a catalyst for growth.

The mountain analogy is apt: with the right tools, education, technology and appropriate policies, microentrepreneurs can not only climb it, but reach the top.

The future of Brazilian entrepreneurship depends on this.