According to the Brazilian Micro and Small Business Support Service (Sebrae), SMEs represent 96% of businesses in Brazil and are responsible for more than 50% of formal jobs in the private sector.
In this article, we will present more detailed data that demonstrate the importance of these businesses and how they influence Brazil's economic and social development.
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What is considered a micro and small business?
Micro and Small Enterprises (MSEs) are classified based on their annual revenue and number of employees, as defined by Complementary Law No. 123/2006, which established the General Law for Micro and Small Enterprises. These classifications help to differentiate the size of companies and to target specific policies and programs to support their development:
Microenterprise (ME) : Annual revenue up to R$360,000.00. Industry: up to 19 employees; Commerce and services: up to 9 employees.
Small Business (EPP) : Annual Revenue from R$360,000.01 to R$4,800,000.00. Industry: 20 to 99 employees; Commerce and services: 10 to 49 employees.
These definitions allow SMEs to have access to simplified tax regimes, differentiated credit lines, and specific support programs, which are essential to promote sustainable growth and competitiveness of these companies in the market.
Overview of micro and small businesses in Brazil
Micro and small enterprises (MSEs) play a crucial role in the Brazilian economy, demonstrating resilience and adaptability. According to research conducted by BigDataCorp , a leader in data in Latin America, Brazil has surpassed the mark of more than 60 million National Registers of Legal Entities (CNPJ) registered throughout its history.
Currently, 36.35% of these registrations are russia phone number active and the average age of active companies is 8 years, with a mortality rate that increases in the first years of activity. Around 77.9% of companies close their operations before completing 4 years, and less than 1% reach 10 years of existence. These numbers highlight the importance of policies to support entrepreneurship, especially those aimed at those who are just starting out on their journey.
Distribution of active companies
Most active companies are head offices, with 94.50%, and only 5.50% are branches. Among these companies, micro enterprises (ME) represent a significant portion of the market, 77.9%. Most of these MEs are sole proprietorships (MEIs), which total 75.62%. This data highlights the importance of small entrepreneurs for the national economy.
SMEs are responsible for creating 80% of formal jobs in Brazil. In 2023, they created more than 1.1 million jobs, reinforcing their importance in maintaining and growing the national economy.
Featured Sectors
The Brazilian business sector is characterized by a wide range of activities. Among the most representative sectors, highlighted in the BigDataCorp survey, are:
Retail trade of clothing items : 7.73% of active CNPJs.
Retail trade of cosmetics, perfumery and personal hygiene products : 4.66%.
Sales promotion : 4.22%.
Retail trade of beverages : 3.99%.
Hairdressers, manicurists and pedicurists : 3.96%.
Electrical installation and maintenance : 3.95%.
The growth of micro and small businesses is an indication of the resilience and adaptability of the sector, which is fundamental to the Brazilian economy. In addition to generating jobs and boosting the economy, these businesses need efficient tools to continue thriving. And one of these tools is the use of data.
How using data can help these businesses
With the high mortality rate of companies in the first few years of operation, it is essential that businesses make data-driven decisions to increase their chances of success. See below for some practical examples of how data can transform every aspect of micro and small business operations:
Assertive decision-making : Accurate and relevant data allows business owners to make informed choices, minimizing risks and maximizing results. This is especially important for smaller businesses, where resources are often limited and each decision can have an impact on the sustainability of the operation.
Identifying market trends : Data analytics helps identify emerging trends and changing consumer behaviors, enabling SMEs to quickly adapt to market demands. Historical data can be used to predict future demand, helping with inventory management and preparing for peak sales without overstocking or running out of products.
Operations Optimization : Data about internal processes is key to effective automation of operations. For example, the onboarding process for new customers can be significantly accelerated and simplified with the use of automated data solutions. By integrating systems that automatically capture, verify, and organize new customer information, companies can reduce wait times, minimize manual errors, and improve customer satisfaction.
Targeted marketing and improving customer experience : Understanding who your customers are and what they need allows SMEs to develop more effective marketing and sales strategies , directing resources to areas with the highest return on investment. Analyzing behavior patterns also helps improve products and services, strengthening customer loyalty and increasing satisfaction.
Additionally, strategic use of data can improve credit and risk assessments. By accessing and analyzing data sets that include credit and default information, companies can improve their risk models. This means safely expanding the customer base while minimizing financial risk.
Learn more about BigDataCorp's solutions for businesses
At BigDataCorp , we believe that reliable data is essential to drive businesses of all sizes. That's why we capture and deliver the best data on the market, helping companies face various challenges, providing fundamental information for the growth of their businesses.
We offer one of the largest data catalogs, with highly qualified information and guaranteed origin of the information provided, which allows the optimization of your company's processes and also provides tailored resources to scale your results.