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More than 90% of MPIs state that the economy will be affected by the tragedies in RS. MPI's satisfaction index is 121 points, but working capital is insufficient.
According to a recent survey carried out by SIMPI/Datafolha, more than 90% of MPI's assess that the tragedies in Rio Grande do Sul will have a significant impact on the Brazilian economy. This research identified that all economic sectors will feel the effects of floods and rain, with MPIs predicting difficulties in the coming months. Furthermore, the working capital currently available to these companies is the lowest ever registered in the search.
The survey highlights the situation of micro and small industries, which already face significant challenges due to insufficient working capital. More than 90% of MPIs nationwide recognize that the consequences of bad weather in Rio Grande do Sul will further worsen these challenges. The survey, in its 13th edition, presents a scenario where economic recovery will be difficult for these small companies, requiring urgent measures to mitigate the impacts.
May Economic Outlook for Micro and Small Industries
The National Micro and Small Industry Activity Indicator survey carried out by SIMPI in partnership with Datafolha, brings a multifaceted perspective of the economic scenario for the month of May, with a special focus on the tragedies that occurred in Rio Grande do Sul. Furthermore, the research offers a complete view of the economic aspects of the last two months, delving deeper into the analysis of the future of MPI's.
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Satisfaction of Micro and Small Industries in Different Regions
Analyzing the MPI's satisfaction index at national level, the index rose and reached the same value observed at this time in the previous year, registering 121 points. The Northeast emerges as the region with the highest satisfaction, totaling 126 points, contrasting with the city of São Paulo, where the score was 115 points. However, when observing the disaggregated components, the evaluation of companies continues to be the most positive, reaching 139 points.
When we analyze each component individually, the South stands out as the most satisfied region in terms of company evaluation, totaling 144 points, and also leads in terms of revenue, with 120 points.
Working Capital Challenges for Small Industries
Working capital expectations present a pessimistic scenario, with 53% of MPIs reporting insufficient working capital, the worst result ever recorded by the SIMPI/Datafolha National Micro and Small Industry Activity Indicator. Only 8% of the companies interviewed revealed that they had more than enough working capital. This context is worrying for the financial health of companies, especially micro and small industries.
With regard to the means used to guarantee working capital, 14% of MPIs used special checks, followed by 11% who sought personal loans. Small industries are the main users of special checks, with 27% of companies adopting this solution.
Impact of Climate Tragedies on the Brazilian Economy
In relation to the climate tragedies that occurred in Rio Grande do Sul, the data reveal a widespread concern about the consequences on various aspects of the Brazilian economy, such as the increase in inflation and raw material costs. More than 90% of MPIs show concern about the internal economy, mainly with the increase in the country's inflation.
Furthermore, supply chain and the supply of products and services are issues that also concern MPIs. More than 80% of small businesses expressed concern about these aspects. In the South, 50% of MPIs believe that the supply of products will have a major change in the economy, while in the Northeast this rate is 58%.
Preparing for Climate Tragedies
When analyzing specific data from Rio Grande do Sul, it appears that the main source of supply and clientele for MPI's in the region was severely affected by the rains, with 47% of MPI's playing a fundamental role in the internal economy. However, 59% of small industries in the region say they were not directly affected by the rains.
Finally, looking to the future, it appears that industries present a significant level of unpreparedness to face climate tragedies such as floods, droughts and extreme heat. The survey revealed that 33% of MPIs do not feel prepared for floods and floods, 24% for situations of extreme heat and 29% for droughts.
About the SIMPI/Datafolha Survey
This research was conducted by SIMPI in partnership with Datafolha, and the National Micro and Small Industry Activity Indicator offers a detailed view of the current situation of the category. Data collection took place between May 13 and 29, 2024, with 712 interviews carried out. For more information about the 13th edition of the National Micro and Small Industry Activity Indicator Survey, contact the Press Office team.
Source: © SIMPI | Press
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