Rising Fuel Prices Hurt Small Businesses Like Individual Microentrepreneurs (MEIs) and Micro and Small Enterprises (MPEs)

Written by Fabio Lucas Carvalho Published on 29/09/2021 at 23:03

Foto: Valter Campanato / Agência Brasil

Fuel Prices Soaring Also Harms Some Important Sectors of the Economy

The high fuel prices are severely harming the economy, further complicating the lives of low-income Brazilians, being one of the major villains of inflation. In addition to directly affecting the purchasing power of Brazilians, the rise in gasoline and diesel prices also impacts small businesses, such as MEIs and MPEs.

This is what the 12th Survey on the Impact of the Pandemic on Small Businesses from Sebrae and FGV states. The research showed that the expenses of companies with inputs, goods, and fuels represent the largest impact on small businesses. This is indicated by a total of 63% of micro-entrepreneurs (MEIs) and 61% of micro and small companies (MPEs) that were surveyed in the study.

App Drivers and Deliverers Affected

Including other important expenses such as electricity and gas costs, the number of businesses that feel impacted rises to 76% among MEIs and 77% for MPEs.

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As most food delivery app workers are MEIs, they are directly affected by the fuel prices, which directly harms their earnings. The same happens with app drivers.

Gerônimo Centurion, president of the App Drivers Association of Foz do Iguaçu (AMAFI), stated that the current fuel prices are making it unfeasible to continue working as an app driver.

Commerce, businesses, enterprises, fuel price — ***Image of a woman using a credit card machine. Photo: Stock Image***

“There will increasingly be a flight of professionals, but it is inversely proportional, meaning that as people leave, others are entering. However, new drivers won’t stay long, no more than three months. The app doesn’t adjust the fare because it knows about this volatility,”

Sebrae does not bring good news. The institute points out that the current scenario for small businesses might get even worse. The reason is that the accumulated increase in gasoline prices has already reached 31% this year, while diesel has risen by 28%.

Rising Fuel Prices Hurt Small Businesses Like Individual Microentrepreneurs (MEIs) and Micro and Small Enterprises (MPEs)

Fuel Prices Soaring Also Harms Some Important Sectors of the Economy

App Drivers and Deliverers Affected

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Rising Fuel Prices Hurt Small Businesses Like Individual Microentrepreneurs (MEIs) and Micro and Small Enterprises (MPEs)

Fuel Prices Soaring Also Harms Some Important Sectors of the Economy

App Drivers and Deliverers Affected

In the cold desert of Ladakh, where it hardly rains, engineer Sonam Wangchuk created the ice stupa, a tower that freezes winter water and stores it for irrigating crops in the spring, a simple engineering feat that mimics nature.

Almost 6,000 residents live concentrated along a single street nearly 9 km long in the interior of Poland. Houses form a continuous row, and behind them, narrow agricultural strips emerge, creating one of the most unusual rural patterns in Europe.

Júlia Pimentel, an 11-year-old from Minas Gerais, independently invented a new formula to calculate the square root using simple addition and multiplication, and her method was published in one of the most important mathematical scientific journals in Brazil.

They planted a sea of eucalyptus to produce cellulose, but the monoculture turned into a green desert, dried up springs and rivers, and pushed families out of regions in Minas Gerais and Bahia.

Chinese woman planted trees for decades while sand buried part of her house, received $5,000 from an American in 1999, and helped transform the desert into a forest of 8 million trees in China.

Without her own home and pressured by rent, a 25-year-old bought a small 15-meter boat, gradually renovated the interior by herself, transformed the interior with paint, new flooring, a larger bathroom, and started living on the canals, paying much less per month.

The Atacama Desert, the driest place on Earth, was covered in flowers and turned into a colorful carpet with more than 200 species in the phenomenon called “desert bloom,” when atypical rains awaken seeds that had remained dormant in the soil for many years.

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