Small and medium-sized enterprises (SMEs) should reap direct benefits from the minimum wage increase, which takes effect in 2012. The projection is presented by a report from Exame.Com, based on an article from Agência Sebrae de Notícias. According to data from the Intersindical Department of Statistics and Socioeconomic Studies (Dieese) presented in the article, the 14%% increase in the minimum wage value should inject R$ 47 billion reais into the Brazilian economy.

Dieese also points out that 48 million Brazilians have incomes linked to the minimum wage, which boosts the consumption cycle. According to Dieese economist Ilmar Ferreira, who was featured in a report by the Exame portal, there is a high chance that the extra R$ 77.00 will be spent in small businesses. Food is expected to be one of the main sectors to benefit, as it already accounts for about 40%of the income of those earning close to the minimum wage, according to the expert. “The propensity for these R$ 47 billion to go towards consumption is almost 100% . For those earning one, two, or three minimum wages, there is very little room for investments. These people will buy close to home to avoid spending on transportation,” states Ferreira in the Exame.com report.

For the president of SEBRAE Nacional, Luiz Barretto, also interviewed in the article, increased income is a natural incentive for doing business, but it also intensifies competition. Therefore, the recommendation is for small business owners to train themselves to take advantage of the opportunities presented by the good economic moment. “Those entrepreneurs who seek innovation and more professionalized management expand their opportunities,” analyzes Barretto.

With information from Portal Exame