The National Program for Productive-Oriented Microcredit (PNMPO) was created in 2005 with the objectives of stimulating the generation of work and income among popular microentrepreneurs, through the provision of specific sources of financing for oriented productive microcredit and to offer technical support to oriented productive microcredit institutions, with a view to institutional strengthening them to provide services to popular entrepreneurs (BRASIL, 2022).
- The PNMPO is aimed at natural and legal persons engaged in urban and rural productive activities, with income or gross annual revenue of up to R$ 360,000 (US$ 6,400);
- The program prioritizes regions of social vulnerability, facilitating financial access for women and young entrepreneurs. The indicators demonstrate that the majority volume of credit granted to women strengthens their social protagonism, leadership in the family nucleus and contributes to gender equality;
- The offer of productive microcredit is based on events to raise awareness among the interested population, with an active search and identification of potential entrepreneurs. Access to the financial world must be enabled with adequate guidance on the credit system, guarantees, payment, business management and elements of financial education that produce sustainability and durability of popular enterprises;
- The mechanisms used to reach more vulnerable groups include research, analysis and description of regional experiences that seek to promote integration between microcredit policies and actions of the Public Employment, Work and Income System, formation of support networks for microcredit institutions, and practice of microcredit methodologies that seek to benefit the most vulnerable population (low-income or beneficiaries of Federal Government income transfer programs);
- Regarding design, the initial assistance to the entrepreneur must be provided by people trained to carry out the socioeconomic survey and provide educational guidance on business planning, with the purpose of defining credit and management needs, focused on the development of the enterprise;
- Due to the need to expand actions in the areas of banking, microcredit, and credit cooperatives, mechanisms and instruments were enhanced to facilitate access to financial products and services adapted to the socioeconomic reality of the low-income population. In 2018, the use of digital technologies in the process of guiding credit borrowers was allowed;
- In 2020, the entire orientation process was permitted to be conducted remotely.
- Total entrepreneurs served: 4,223,431 (2022 PNMPO data)
- Women entrepreneurs served: 66% (2022 PNMPO data)
- Registered institutions: 122 (2022 PNMPO data)
- Total contracts completed: 4,144,820 (2022 PNMPO data)
- Contracts completed to Bolsa Família Program beneficiaries: 1,861,132 contracts
- Total amount granted: R$ 14,715,233,889 (around US$ 3 billion) (2022 PNMPO data)
- Average contract ticket: R$ 3,541.06 (around US$ 700) (2022 PNMPO data)
- Amount granted to the public of the Single Registry: R$ 10,181,920,767.95 (around US$ 2 billion) (2022 PNMPO data)
- Amount granted to Bolsa Família Program beneficiaries: R$ 6,304,552,191.02 (around US$ 1.2 billion) (2022 PNMPO data)
Decentralized, involving the coordination of public entities and institutions at all federal levels and private partnerships, such as financial institutions, non-governmental organizations, development agencies, cooperatives and credit offices.
At the national level, the Ministry of Labor and Employment (MTE) is the body responsible for coordinating, managing, monitoring and evaluating the National Program for Oriented Productive Microcredit (PNMPO). The Ministry coordinates the Program's Advisory Board and the National Microcredit Forum. In addition, it is responsible for managing, monitoring and evaluating the Program and for qualifying OSCIPS and legal entity credit agents, which operate in the PNMPO.The National Microcredit Forum was created within the scope of the PNMPO, with the participation of competent federal agencies and entities representing the sector, with the objective of promoting continuous debate among entities linked to the segment. The proposals of the National Microcredit Forum do not bind the actions of the National Monetary Council - CMN, CODEFAT, the Board of Trustees of the FGTS and the boards of the constitutional financing funds.The National Microcredit Forum is responsible for:
- proposing and supporting the preparation of studies and the development of tools that enable the monitoring and evaluation of the National Program for Oriented Productive Microcredit - PNMPO;
- proposing the adoption of measures to improve legislation and strengthen the PNMPO;
- encouraging the formation of partnerships between the entities operating the PNMPO; and
- encouraging integration between the PNMPO and other policies.
Sistema de Informações Gerenciais do PNMPO (SIMPO) - It facilitates the registration process of institutions seeking qualification with the PNMPO and collects data on the execution of institutions operating the PNMPO.
- Os Efeitos do microcrédito na renda dos beneficiários: análise do Programa Crescer - The Crescer Program is a subprogram within the scope of the National Guided Productive Microcredit Program (PNMPO), considered a microcredit policy aimed at low-income formal and informal microentrepreneurs. In this sense, it provides unsecured credit, with interest rates subsidized by the federal government, and valid from 2011 to 2014. The results of the study demonstrated that, after the Crescer Program was in effect, the effect on individuals' income varied from 6.37% in 2015 to 5.42% in 2019, in relation to the economic return, for the subset of individuals belonging to the Single Registry, which was positive and high. It is concluded that the benefits of increasing individuals' income were greater than the costs in terms of interest subsidies on loans.
- Impacto do microcrédito na pobreza: o exemplo do Brasil - The study used the panel data model methodology, combining data annually for 27 states in Brazil from 2012 to 2022. It concluded that the PNMPO has a significant and negative in poverty in the North and Northeast regions and with little significance in the others regions.
- Mechanisms to avoid over-indebtedness due to successive operations;
- Adequate guidance for opening a business;
- Preparation of a business plan in line with the potential of the market and the proposed activity;
- Need for legal security for operations with rules that encourage formality and protection of economic rights;
- Support from the social assistance network for public mobilization.
SDG 1 - No poverty
- Target 1.4 - By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance
- Indicator 1.4.1 - Proportion of population living in households with access to basic services
- Indicator 1.4.2 - Proportion of total adult population with secure tenure rights to land, (a) with legally recognized documentation, and (b) who perceive their rights to land as secure, by sex and by type of tenure
SDG 4 - Quality education
- Target 4.4 - By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship
- Indicator 4.4.1 - Proportion of youth and adults with information and communications technology (ICT) skills, by type of skill
SDG 8 - Decent work and economic growth
- Target 8.3 - Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services
- Indicator 8.3.1 - Proportion of informal employment in total employment, by sector and sex
- Target 8.10 - Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all
- Indicator 8.10.1 - (a) Number of commercial bank branches per 100,000 adults and (b) number of automated teller machines (ATMs) per 100,000 adults
- Indicator 8.10.2 - Proportion of adults (15 years and older) with an account at a bank or other financial institution or with a mobile-money-service provider
SDG 10 - Reduced inequalities
- Target 10.1 - By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average
- Indicator 10.1.1 - Growth rates of household expenditure or income per capita among the bottom 40 per cent of the population and the total population
- Target 10.2 - By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status
- Indicator 10.2.1 - Proportion of people living below 50 per cent of median income, by sex, age and persons with disabilities.
Access to irrigation;
Promote inclusive access to agricultural markets;
Inclusive value addition and processing;
Farmer registry;
Training (vocational, life skills, cash for training, entrepreneurship);
Social registry;
Support to livelihood diversification;
Pro-poor access to agricultural inputs, and climate resilient technologies
Promote inclusive access to agricultural markets;
Inclusive value addition and processing;
Farmer registry;
Training (vocational, life skills, cash for training, entrepreneurship);
Social registry;
Support to livelihood diversification;
Pro-poor access to agricultural inputs, and climate resilient technologies
Specific SDGs affected
Existing approaches/options to address specific inequalities or specific sub-populations and groups
Evidence base
Lessons learned
Linkages with other policy instruments
Knowledge institutions
Type of governance
Coverage indicators
Cost indicators
Management Information System (MIS)
Website
Specific SDGs affected
SDG 1 – No poverty
- Target 1.4 – By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance
- Indicator 1.4.1 – Proportion of population living in households with access to basic services
- Indicator 1.4.2 – Proportion of total adult population with secure tenure rights to land, (a) with legally recognized documentation, and (b) who perceive their rights to land as secure, by sex and by type of tenure
SDG 4 – Quality education
- Target 4.4 – By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship
- Indicator 4.4.1 – Proportion of youth and adults with information and communications technology (ICT) skills, by type of skill
SDG 8 – Decent work and economic growth
- Target 8.3 – Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services
- Indicator 8.3.1 – Proportion of informal employment in total employment, by sector and sex
- Target 8.10 – Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all
- Indicator 8.10.1 – (a) Number of commercial bank branches per 100,000 adults and (b) number of automated teller machines (ATMs) per 100,000 adults
- Indicator 8.10.2 – Proportion of adults (15 years and older) with an account at a bank or other financial institution or with a mobile-money-service provider
SDG 10 – Reduced inequalities
- Target 10.1 – By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average
- Indicator 10.1.1 – Growth rates of household expenditure or income per capita among the bottom 40 per cent of the population and the total population
- Target 10.2 – By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status
- Indicator 10.2.1 – Proportion of people living below 50 per cent of median income, by sex, age and persons with disabilities.
Existing approaches/options to address specific inequalities or specific sub-populations and groups
The National Program for Productive-Oriented Microcredit (PNMPO) was created in 2005 with the objectives of stimulating the generation of work and income among popular microentrepreneurs, through the provision of specific sources of financing for oriented productive microcredit and to offer technical support to oriented productive microcredit institutions, with a view to institutional strengthening them to provide services to popular entrepreneurs (BRASIL, 2022).
- The PNMPO is aimed at natural and legal persons engaged in urban and rural productive activities, with income or gross annual revenue of up to R$ 360,000 (US$ 6,400);
- The program prioritizes regions of social vulnerability, facilitating financial access for women and young entrepreneurs. The indicators demonstrate that the majority volume of credit granted to women strengthens their social protagonism, leadership in the family nucleus and contributes to gender equality;
- The offer of productive microcredit is based on events to raise awareness among the interested population, with an active search and identification of potential entrepreneurs. Access to the financial world must be enabled with adequate guidance on the credit system, guarantees, payment, business management and elements of financial education that produce sustainability and durability of popular enterprises;
- The mechanisms used to reach more vulnerable groups include research, analysis and description of regional experiences that seek to promote integration between microcredit policies and actions of the Public Employment, Work and Income System, formation of support networks for microcredit institutions, and practice of microcredit methodologies that seek to benefit the most vulnerable population (low-income or beneficiaries of Federal Government income transfer programs);
- Regarding design, the initial assistance to the entrepreneur must be provided by people trained to carry out the socioeconomic survey and provide educational guidance on business planning, with the purpose of defining credit and management needs, focused on the development of the enterprise;
- Due to the need to expand actions in the areas of banking, microcredit, and credit cooperatives, mechanisms and instruments were enhanced to facilitate access to financial products and services adapted to the socioeconomic reality of the low-income population. In 2018, the use of digital technologies in the process of guiding credit borrowers was allowed;
- In 2020, the entire orientation process was permitted to be conducted remotely.
Evidence base
Lessons learned
- Mechanisms to avoid over-indebtedness due to successive operations;
- Adequate guidance for opening a business;
- Preparation of a business plan in line with the potential of the market and the proposed activity;
- Need for legal security for operations with rules that encourage formality and protection of economic rights;
- Support from the social assistance network for public mobilization.
Linkages with other policy instruments
Access to irrigation; Promote inclusive access to agricultural markets; Inclusive value addition and processing; Farmer registry; Training (vocational, life skills, cash for training, entrepreneurship); Social registry; Support to livelihood diversification; Pro-poor access to agricultural inputs, and climate resilient technologies
Knowledge institutions
Type of governance
Decentralized, involving the coordination of public entities and institutions at all federal levels and private partnerships, such as financial institutions, non-governmental organizations, development agencies, cooperatives and credit offices.
At the national level, the Ministry of Labor and Employment (MTE) is the body responsible for coordinating, managing, monitoring and evaluating the National Program for Oriented Productive Microcredit (PNMPO). The Ministry coordinates the Program’s Advisory Board and the National Microcredit Forum. In addition, it is responsible for managing, monitoring and evaluating the Program and for qualifying OSCIPS and legal entity credit agents, which operate in the PNMPO.The National Microcredit Forum was created within the scope of the PNMPO, with the participation of competent federal agencies and entities representing the sector, with the objective of promoting continuous debate among entities linked to the segment. The proposals of the National Microcredit Forum do not bind the actions of the National Monetary Council – CMN, CODEFAT, the Board of Trustees of the FGTS and the boards of the constitutional financing funds.The National Microcredit Forum is responsible for:
- proposing and supporting the preparation of studies and the development of tools that enable the monitoring and evaluation of the National Program for Oriented Productive Microcredit – PNMPO;
- proposing the adoption of measures to improve legislation and strengthen the PNMPO;
- encouraging the formation of partnerships between the entities operating the PNMPO; and
- encouraging integration between the PNMPO and other policies.
Coverage indicators
- Total entrepreneurs served: 4,223,431 (2022 PNMPO data)
- Women entrepreneurs served: 66% (2022 PNMPO data)
- Registered institutions: 122 (2022 PNMPO data)
- Total contracts completed: 4,144,820 (2022 PNMPO data)
- Contracts completed to Bolsa Família Program beneficiaries: 1,861,132 contracts
Cost indicators
- Total amount granted: R$ 14,715,233,889 (around US$ 3 billion) (2022 PNMPO data)
- Average contract ticket: R$ 3,541.06 (around US$ 700) (2022 PNMPO data)
- Amount granted to the public of the Single Registry: R$ 10,181,920,767.95 (around US$ 2 billion) (2022 PNMPO data)
- Amount granted to Bolsa Família Program beneficiaries: R$ 6,304,552,191.02 (around US$ 1.2 billion) (2022 PNMPO data)
Management Information System (MIS)
Sistema de Informações Gerenciais do PNMPO (SIMPO) – It facilitates the registration process of institutions seeking qualification with the PNMPO and collects data on the execution of institutions operating the PNMPO.
Website