Favelas are informal settlements found primarily in Brazil, characterized by densely packed housing and often built without official permission. They typically arise due to rapid urbanization and economic inequality, providing shelter for low-income families. Favelas can be found in major cities like Rio de Janeiro and São Paulo, where they often sit on hillsides or in other challenging locations. Despite facing issues such as inadequate infrastructure and limited access to services, favelas are vibrant communities with their own culture and social networks. Residents often engage in local businesses and community initiatives, showcasing resilience and creativity in overcoming challenges.