Revenue generated by small companies is R$ 420 billion per yr
The data are part of the “Atlas dos Pequenos Negócios”, a survey launched by Sebrae
Small businesses are one of the main driving forces of the Brazilian economy. Data from an unprecedented survey carried out by Sebrae show that only with the income generated by the activity of Individual Microentrepreneurs (MEI), together with Micro and Small Businesses, the segment generates a monthly income for entrepreneurs of R$ 35 billion, which represents approximately R$ 420 billion per year.
The “Atlas dos Pequenos Negócios” reveals that, in 2022, considering the income of MEIs in activity, this entrepreneur profile generates, every month, R$ 11 billion with their work. Which means that – in the period of one year – the Individual Microentrepreneurs alone inject BRL 140 billion into the Brazilian economy. The owners of Micro and Small Businesses, on the other hand, generate R$ 23 billion per month. In the period of one year, the total moved by this company profile reaches R$ 280 billion.
The document was released this Tuesday, at a press conference that also marked the 50th anniversary of Sebrae. The president of the institution, Carlos Melles, highlighted, during the press conference, the strength of small businesses and projected that Brazil should achieve sustainable and spontaneous growth of 3% per year, at a time when the participation of micro and small companies in GDP reach the proportion of 40% (today MSEs account for approximately 30% of Brazilian GDP).
“In developed countries, the share of small businesses in GDP is around 40% to 50%. If in 10 years we manage to promote this growth, the entire economy will benefit, thanks to the power that MSEs have to generate income and jobs”, he evaluated.
Most MEIs (78%) have their only source of income in their activity as entrepreneurs. Based on this data, it is estimated that around 6.7 million MEIs in activity depend exclusively on their work as entrepreneurs. As for the owners of micro and small companies (MPE), 71% have no other source of income, according to a Sebrae survey.
Considering the 6.6 million MSE in activity, the projection is that there are 4.7 million entrepreneurs in this profile who are totally dependent on the income obtained with the company. Bringing together the entire universe of small businesses (MEI + MPE), the data revealed by the Sebrae Atlas is that, among the 15.3 million entrepreneurs in activity in Brazil, 11.5 million have their business activity as their only source of income. .
The strength of MEI
Between 2012 and 2021, the number of self-employed workers in Brazil grew by 26%, from 20.5 million to 25.9 million. The number of formalizations among MEIs increased from 2.6 million to 11.3 million, an increase of 323%. This means a growth more than 12 times greater among MEI compared to business owners who have not formalized themselves.
According to a Sebrae survey, 28% of MEIs already worked outside the formal market, and their main occupations were informal entrepreneurship (13%) or employees without a formal contract (15%), when they decided to adopt the Individual Microentrepreneur regime. The proportion of informal people has been reduced over the period (2013-2021), especially in relation to the informal entrepreneur. It is estimated that 2.5 million people were removed from informality in 2021 (28% of 8.7 million active MEIs), as a result of the MEI registration.
In relation to Micro and Small Businesses, 13% of the entrepreneurs were informal before the opening of the business, with 6% already working as informal entrepreneurs and another 7% were employees without a formal contract.
About Sebrae 50+50
The press conference on the Atlas of Small Businesses is part of a schedule of events planned for the 50th anniversary of Sebrae, celebrated this July 5th. The day also featured the inauguration of the Collaborators’ Mural and the 50+50 Exhibition, a live Anniversary Celebration, among other actions planned for the internal public.
Infographic brings a profile of MEI and MPE in activities in the country. — Photo: Sebrae/CE collection
The activities that mark the 50 years of existence revolve around the theme “Creating the future is making history”. Called the Sebrae 50+50 Project, the initiative emphasizes the institution’s three pillars of action: promoting an entrepreneurial culture, improving business management and developing a healthy and innovative business environment for small businesses in Brazil. Past, present and future are in focus, showing the evolution from the foundation in 1972 to the present day, with a look also at the new challenges that will come for entrepreneurship in the country.