"A study of Brazil's informal sector by McKinsey suggests that informal businesses in Brazil are about half as productive as their competitors who follow the rules." This creates a climate where firms would rather break rules and not pay taxes in order to compete fairly with their rivals. Low taxes hurt the governments revenues, while rule breaking hurt employees who happen to get jobs. … "Informal Business Sector in Brazil" has a significant impact, so an analyst should put more weight into it. "Informal Business Sector in Brazil" will have a long-term negative impact on this entity, which subtracts from the entity's value. This statements will have a short-term negative impact on this entity, which subtracts from its value. This statement will lead to a decrease in profits. "Informal Business Sector in Brazil" is a difficult qualitative factor to overcome, so the investment will have to spend a lot of time trying to overcome this issue.