Economy of solidarity grows in Brazil, but with difficulties

A study published in early September by Brazil’s Ministry of Labour and Employment shows that solidarity undertakings are more numerous but have difficulties finding their place in the market. According to the report, more than 21,000 organizations in Brazil come into the category of cooperation, self-management and solidarity. The state with the largest number of solidarity companies is Rio Grande do Sul with 2,085, followed by Ceará with 1,854 and Pernambuco with 1,526. About 48 per cent of the organizations focus mainly on rural activities, while 17 per cent work with rural and urban activities and 35 per cent focus only on urban work.

Solidarity companies are an alternative to unemployment, although the incomes they provide are quite reduced: 36 per cent have inflows between USD 540 and USD 3,200 per month, 24 per cent receive less than USD 540 and only 4.8 per cent have incomes higher than USD 54,000. The undertakings have between 20 and 50 workers. The main difficulties include an insufficient client base and a lack of specialized sales personnel.

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