The role of micro enterprises in the Brazilian economy

Every day we hear about big companies, which shape and define the structures of the national and international economy. Some examples are regularly featured in the national media and often populate the discussions of social networks, due to their changes and the way they contribute to changing our habits and the very dynamics of our country and our planet.

The role of micro enterprises in the Brazilian economy

Every day we hear about big companies, which shape and define the structures of the national and international economy. Some examples are regularly featured in the national media and often populate the discussions of social networks, due to their changes and the way they contribute to changing our habits and the very dynamics of our country and our planet. Various concerns are generated around these issues. Some brands, such as Samsung or Uber are extremely representative in Brazil. These giants occupy a prominent international space, and recently Uber and its debut in the stock market has been a regular theme.

In addition to these large companies, however, micro companies also have a key role in the economy. In fact, in Brazil, they are currently a great force in the national economy. But, after all, what is the role of these small companies in the Brazilian market? That is what we sought to know!

The strength of microenterprisesThe

world is changing and technology has created ways to create a business without even having to leave home. This has, of course, led to the proliferation of small Brazilian companies. The Support Service for Micro and Small Enterprises (SEBRAE) has released some figures on the representativeness of these companies on Brazilian soil, estimating that there are about 6 million small companies in Brazil, representing 97 national companies.

These figures, which place Brazil among the countries with the greatest entrepreneurship, is representative, in part, of the desire of recent graduates to open their own businesses and of the unemployed to create alternatives. Many of these companies exist only in the digital world.

Small businesses, employment and billingThe

role of micro businesses in Brazil is immense, and they are responsible for employing about 52 workers in this country, creating the equivalent of 13 million jobs. The Brazilian GDP is 20% generated by these workers. Although there are also bleak figures on the number of companies that fail and go bankrupt during the first 18 months after their foundation, the truth is that many companies end up drilling in the Brazilian market. To some extent, the fact that they are smaller, have less bureaucracy and manage to become more dynamic means that they can, at times, compete with each other and also with some of the largest national companies.

Of course, for these companies to remain active, good management is essential and the administrative logics of these companies therefore become somewhat complex. Usually, strategies to guarantee the improvement of productivity and to reduce production costs are combined with strategies to avoid the loss of time, resources and capital. The control of risks and the analysis of investments by these companies is not always done in the most balanced and accurate way, which also explains the failure rate. Even so, it is undeniable that micro companies are today one of the basic pillars of the whole economy in Brazil.