The research project titled “The crisis viewed from the periphery: striving for social mobility at the edges of (il)legality,” spearheaded by Leonardo de Oliveira Fontes with the backing of FAPESP (grant numbers 19/13125-2 and 21/13970-4), aimed to understand the coping mechanisms of the impoverished communities in Brazil amidst the economic downturn that hit the country in 2014. An article resulting from this research has been published in the International Journal of Urban and Regional Research, showcasing the findings of this in-depth investigation.

Leonardo de Oliveira Fontes is a faculty member in the Sociology Department at the State University of Campinas (UNICAMP) in São Paulo and conducts research on Urban Ethnography at CEBRAP, a research centre based in São Paulo City. During the study, he discovered that entrepreneurship emerged as a significant strategy among low-income people to engage with the economy during the crisis. This observation was derived from qualitative research and supported by quantitative data. A 2021 survey by the Global Entrepreneurship Monitor (GEM) indicated that 50 million Brazilians were interested in starting their businesses within the next three years, a 75% increase from 2020, a rise attributed to the economic crisis worsened by the COVID-19 pandemic. This surge in entrepreneurial interest reflects, at least in part, a lack of better employment alternatives, as evidenced by the decrease in average monthly income for informal workers from BRL 2,200 in 2014 to BRL 1,991 in 2022, compared to BRL 2,472 for formal workers in 2022.

Fontes’s study focuses on the entrepreneurs residing in the peripheral suburbs of major Brazilian cities inhabited by low-income families. These entrepreneurs fall into two categories: those operating entirely within the informal economy and those entering the formal economy by registering as “individual micro-entrepreneurs” (MEIs) benefiting from a simplified tax regime. The number of MEIs has surpassed 15 million nationwide, with over a million in São Paulo city alone.

Fontes’s qualitative and ethnographic research involved conducting in-depth interviews and participating in observations at strategic locations, including trade shows and entrepreneurial meetings. His analysis addresses two primary perspectives in the sociological literature on entrepreneurship: one views it as a component of a neoliberal capitalist strategy, emphasizing the “Uberization of labor.” At the same time, the other sees it as an ideological mechanism that isolates and blames individuals for their success or failure, undermining their identity as workers and their collective bargaining power.

Fontes aimed to transcend these views by exploring the origins of entrepreneurial spirit among São Paulo’s peripheral residents and the extent to which neoliberal practices have been integrated into their behaviours and social structures. He argues that accepting entrepreneurship and neoliberal values among these communities has historical and social roots beyond mere ideological persuasion.

The article presents the stories of five individuals from three different families to explore how gender roles influence entrepreneurial attitudes, identifying fundamental moral values such as a “worker’s ethic,” a “getting-by ethic,” and a “provider’s ethic.” Fontes highlights the adaptability and resourcefulness of these individuals, who strive for economic survival and seek meaningful work despite the challenges posed by the labour market and societal expectations.

Fontes’s findings suggest that while neoliberal ideologies have permeated these communities, there are also elements of resistance and alternative perspectives on entrepreneurship that avoid the pitfalls of precarity and dissatisfaction. He concludes that the complex relationship between neoliberalism and the values of entrepreneurs in the periphery warrants further sociological analysis, recognizing both the influences of neoliberal reason and the potential for resistance and change within these communities.

More information: Leonardo Fontes et al, BETWEEN DREAMS AND SURVIVAL: The (Dis)Embeddedness of Neoliberalism among Entrepreneurial Workers from São Paulo’s Peripheries, International Journal of Urban and Regional Research. DOI: 10.1111/1468-2427.13218

Journal information: International Journal of Urban and Regional Research Provided by Fundação de Amparo à Pesquisa do Estado de São Paulo