Page 4 - 201905G20Entrepreneurship Newsletter

Brazilian Government Signs Measure to Reduce Bureaucracy for Startups

Brazilian President Jair Bolsonaro signed a provisional measure to foster Freedom to innovate: officials will review old laws to remove regulations
entrepreneurship through reduced levels of bureaucracy at the end of impeding the development of new technologies. no permits will be necessary
April 2019, with aims to increase entrepreneurship and startup creation to test, develop or implement new low-risk products.
by eliminating limitations, roadblocks, paperwork and costs involved in Freedom to digitize: Startups can scan and discard all paperwork to
starting a business. These are some of the key principles behind the policy:
diminish storage costs.
Freedom from bureaucracy: there won’t be any prior authorization for Freedom to grow: It will be easier for small and medium-sized companies
starting low-risk economic activities.
to access public markets, meaning Brazilian startups won’t need to IPO
Freedom to work and produce: if they don’t violate labor rights, startups abroad.
will be able to work and generate income whenever they find most Freedom to undertake: judicial decisions cannot disregard legal personality
convenient.
unless there’s proof of bad faith from the entrepreneur. Regulators won’t
Freedom to define prices: startups can fix and fluctuate their own prices be able to go beyond the limits to harm entrepreneurs, causing undue
based on market conditions of supply and demand. economic distortions.
Freedom from arbitrariness: tax arrangements will be equal for all The measure is in a bid to reduce regulations and bureaucracy for individuals
citizens. to start high-growth businesses, so it will probably propel Brazil’s economy
and tech industry.

NAFTA 2.0 Pay More Attention to SMEs
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On November 30, 2018, Canada, the United States and Mexico signed the
new Canada-United States-Mexico Agreement (CUSMA), on the margins
of the G20 leaders’ summit in Buenos Aires, which is also called North
America Free Trade Agreement (NAFTA). It includes a specific chapter
for regulating small and medium-sized businesses. According to Chapter
25, the governments will pay more attention to SMEs by integrating them
into the export market, improving their competitiveness and establishing
a SME committee. The SME Committee is composed of representatives
from the three countries, which is mainly responsible for seeking
cooperation opportunities, analyzing best practices, assisting SMEs to
export, organizing seminars, and exploring ways to improve exports. The
main activities include: enhance the capability of SME staff in the public sector procurement process; attract more SMEs to become business
partners with those have engaged in North American Free Trade Agreement; establish the database of SMEs from three countries; discuss the
standards and criteria of each country's SMEs support plan. The establishment of the SME Committee has convinced the SMEs of the three
countries that it is possible that they can engage in the international market by exporting directly or becoming part of the production chain of
large companies.