The number of small businesses will grow by 43% in five years.

Sebrae Agency - By 2022, Brazil will have approximately 17,7 million small businesses, meaning more than one million new ventures per year, according to estimates from Sebrae. This number is 43% higher than the current figure of 12,4 million Individual Microentrepreneurs (MEI) and micro and small businesses opting for the Simples Nacional, a system that reduces the tax burden and bureaucracy. 

The president of Sebrae, Guilherme Afif Domingos, emphasizes that the fact that small businesses represent 98,5% of enterprises in the country and are responsible for generating income for 70% of Brazilians employed in the private sector is irrefutable proof of the importance of this segment to the economy. "There are 50,6 million Brazilians whose income originates from small-scale businesses," he highlights.  

Afif also points out that micro and small businesses are increasingly playing an important role in job creation. "Small businesses are the engines of the Brazilian economy. They are the ones that hire the most when the economy grows, take longer to lay off employees when the economy slows down, and are the ones that lay off the fewest people when the economy contracts," Afif emphasizes. 

In the first seven months of 2017, micro and small businesses showed a positive balance of jobs. From January to August, small businesses accumulated almost 327 new jobs, while medium and large companies eliminated 182,4. The Services sector was primarily responsible for the good job creation performance of micro and small businesses this year: 204 formal hires.  

GPD 

Small businesses still account for more than a quarter of Brazil's Gross Domestic Product (GDP). Together, the approximately 12,4 million companies opting for the Simples Nacional tax regime represent 27% of the GDP. Furthermore, micro and small businesses are the main generators of wealth in the Brazilian Commerce sector, accounting for 53,4% ​​of that sector's GDP. In the Industrial GDP, the participation of micro and small businesses (22,5%) is approaching that of medium-sized companies (24,5%). And in the Services sector, more than a third of national production (36,3%) originates from small businesses.