Only 1% of 2 million unemployed want to become entrepreneurs

Of the approximately two million unemployed in Portugal between 2005 and 2016, only 1.1%, equivalent to 23,530 people, took part in the Monte Único, a Portuguese public program that allows anyone covered by unemployment benefits to receive the amount in advance. its grants (up to 47,791 euros) to start a business, according to a study by the Francisco Manuel dos Santos Foundation, presented to the public this Monday.

With regard to companies created by this incentive, whose only requirement is that individuals do not earn any income from employment other than the income derived from their business for a period of three years, they are smaller on average and present “turnover”. values, total assets and equity lower than the others,” the analysis points out.

The conclusions of the study, coordinated by Miguel Ferreira, a professor at Nova SBE, and co-authored by Marta Lopes, Francisco Queiró and Hugo Reis, show that the participants in Single Money are “older and more qualified” people, with a average salary -unemployment in the region of 1170 euros gross.

With capital already on its side, it is active in sectors such as “Wholesale and retail trade; repair of motor vehicles and motorcycles”, “Consultancy, scientific, technical and similar activities”, “Manufacturing industries” and “Housing, restaurants and the like” where Portuguese entrepreneurs often bet on.

As for the legal regime adopted when establishing a business, the data shows that entrepreneurs are four times more likely to set up a business than a sole proprietor. According to the authors, this is a reality “particularly relevant in Portugal, as companies, although they represent only 32% of companies in Portugal, are responsible for 76% of employment and 96% of turnover”.

Since the difficulty of accessing capital is one of the major hurdles for those seeking to start a business, solutions such as the mere amount provide an opportunity to start a business, reducing “the odds of an unemployed person becoming an entrepreneur.” ” is magnified. study, assessing the effects of funding constraints on national entrepreneurship.

While factors such as personal wealth, skills, property value and individual motivation are directly related to the creation of new businesses, the authors argue that capital is the key point for its realization, with “an extra thousand euros in financing” to be financed. prove to make a difference, by “increasing the chance of an individual becoming an entrepreneur in Portugal by 11%”.

As for this opportunity, “higher-income pre-unemployment individuals are more likely to be entrepreneurial once funding restrictions are relaxed than lower-income individuals,” the study finds.

Mimobox, a company that offers a home delivery service of surprise boxes of products for pregnant women and babies, and ReadAction, active in the communications field, are two successful examples that have emerged through the public program, which argue that the relief of restrictions on financing for unemployed can lead to successful businesses and thus have a positive effect on the “quantity and quality of entrepreneurship in Portugal”, the authors conclude.

Mariana Coelho Dias is a journalist for Dinheiro Vivo