Opening of Micro and Small Businesses Breaks Records in the Country in 2021. According to Sebrae, There Were More Than 3.9 Million New Ventures

Enterprises in Brazil Increased by Almost 20% Compared to 2020. According to Sebrae, Creating Your Own Business Is a Promising Path

Based on information provided by the Federal Revenue, survey data conducted by the Brazilian Service of Support for Micro and Small Enterprises (Sebrae) indicates that in 2021, nearly 4 million new enterprises were formalized. Compared to the previous year (2020), the numerical growth was 19.8%, equivalent to the creation of 3.3 million new CNPJs. In relation to 2018, the advance was 53.9%, with more than half of registered CNPJs, with 2.5 million new micro and small enterprises.

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The president of Sebrae, Carlos Melles, emphasizes that entrepreneurship in Brazil is likely to continue growing. “The 2020 Global Entrepreneurship Monitor (GEM) report, conducted by Sebrae and the Brazilian Institute of Quality and Productivity (IBPQ), estimates that 50 million Brazilians who were not yet entrepreneurs planned to start a business in the next three years,” he states.

Enterprises of Various Sizes

As published in Canaltech by Roseli Andrion, for the president of Sebrae, the growth of companies and other forms of enterprises in Brazil is directly related to the improvement of the business environment in the country and the stabilization of the legal framework for Individual Microentrepreneurs (MEI). Among all the National Registrations of Legal Entities recorded last year, only 20% of the enterprises opened are not MEIs, meaning that 3.2 million CNPJs are linked to microenterprises. According to Melles, a few years ago, between 2018 and 2019, MEI enterprises accounted for 75% of the small businesses founded.

Of the total enterprises opened last year, microenterprises accounted for 17.35%, or 682.7 thousand in number – which set a record. In previous years, these numbers were lower: 579.5 thousand in 2020; 579.3 thousand in 2019; and 540.6 thousand in 2018. Regarding the total number of small enterprises, 121.9 thousand were registered in 2021. In 2020, there were 29% fewer, with 94.3 thousand enterprises; in 2018, the quantity was 62.5% lower than last year, with 75 thousand. The president of Sebrae, Carlos Melles, points out: “Not only did MEIs show growth, but all the segments that make up the world of small businesses in Brazil. This shows that this segment is truly the way to recovery.”

Learn More Details about the Promising Sector of Entrepreneurship

As highlighted by Sebrae’s data, Brazilian enterprises have been gaining strength and prominence in recent years. According to the 2018 GEM survey, 38% of the country’s population owns their own business.

Ease of Opening a CNPJ

Equivalent to our CPF, the registration for businesses is of utmost importance. Today, the process of opening can be done without leaving home, via the web. For those who are MEI and need to issue invoices, the process is also online.

More Favorable Areas

According to the Trends Notebook 2019-2020, a partnership of Sebrae with the Brazilian Association of Personal Hygiene, Perfumery, and Cosmetics Industry, the niche of natural cosmetics has a promising future and is worth pursuing. Also in line with sustainability, companies offering “plant-based” food, that is, without ingredients from livestock, are a great bet.

Digital Companies in the Market

Currently, those who run a virtual enterprise, such as stores on Instagram, receive great prominence. Additionally, more and more large companies have emerged that operate solely online: streaming platforms that occupy the TVs of many Brazilians, like Netflix, and digital banks that meet the same needs as conventional ones, like Nubank. Thus, technology represents an incredible tool to boost small or micro enterprises and generate extra income. 

Also watch the report from Band regarding Sebrae’s survey: Opening of Small Businesses Sets Record