THE INDIVIDUAL MICROENTREPRENEUR (MEI) IN BRAZIL: AN ANALYSIS OF RIGHTS, DUTIES, CHALLENGES, AND THE “PEJOTIZAÇÃO” PHENOMENON

Abstract

This article analyzes, from a legal and socioeconomic perspective, the rights, duties, and challenges faced by Individual Microentrepreneurs (MEIs) in Brazil, with a focus on how the current legal framework affects the exercise of rights and compliance with obligations. Methodologically, this is a descriptive and documentary study based on an integrative literature review, examining studies published between 2020 and 2026 in the SciELO and Google Scholar databases and interpreted through Bardin's Thematic Analysis. The findings reveal the ambivalent nature of the MEI regime: on the one hand, it has expanded social security inclusion and simplified the formalization of workers historically excluded from the formal system; on the other hand, it has also been used, in certain contexts, as a mechanism for labor flexibilization and for concealing employment relationships, a phenomenon known as pejotização. In addition, legal and operational constraints, combined with low levels of financial literacy, limit the growth of part of these ventures and favor dynamics of subsistence entrepreneurship. The study concludes that legislative improvements and public policies providing technical support are needed to strengthen microentrepreneurial development without undermining labor protection.