The Service Sector concentrates the biggest proportion of small companies within the economic system

The Services sector continues to expand in the economy, mainly driven by the large concentration of small businesses. In 2021, this activity segment brought together half of all Individual Microentrepreneurs (MEI) in the country and 41% of micro and small companies (MPE). This data was revealed by the Small Business Atlas, prepared by Sebrae.

According to the document, among the 20 activities with the highest number of MEIs, twelve are in Services, five in Commerce and three in Civil Construction. Among micro and small companies, of the 20 activities with the highest concentration of businesses of this size, ten are in service, nine in commerce and one in civil construction.

According to the president of Sebrae, Carlos Melles, the large number of small businesses in Services activities is the result of the very characteristics of this segment. “While in the Commerce and Industry sectors, the entrepreneur has an initial cost with the purchase of equipment and products or renting space, in Services, the company often fits into the stock exchange itself. Activities such as hairdressing, locksmithing, production of warm drinks, for example, can be carried out on the street, at the client’s or entrepreneur’s house ”, he comments. “Furthermore, this segment generally demands a lower level of specialization, which makes the activity more accessible to a wider audience of potential entrepreneurs”, adds the president of Sebrae.

The facilities offered by MEI attracted Lucas Andrea, who exchanged his job at the bank for entrepreneurship. He launched the company in the audiovisual area in 2021 in the city of São Paulo. “I do advertising services for small and medium-sized companies in the textile sector. These ventures find it difficult to have good, quality photography to compete with the big ones,” he says. Before opening, the entrepreneur invested R$ 12 thousand in equipment. According to Lucas, the company is doing well.

Record number of MEI

The Small Business Atlas also shows that in 2021 there were 11.2 million individual micro-entrepreneurs (historical record) and 7.2 million micro-enterprises and small businesses. Also according to the survey, in 2021, 3.1 million new MEIs were opened, accounting for almost 80% of all companies created last year. The largest contingent was in the state of São Paulo: almost 870 thousand MEI.

Five activities with the highest concentration of MEI

• Retail trade of clothing items and accessories – 6.9% (Trade).
• Hairdressers, manicures and pedicures – 6.9% (Service).
• Masonry works – 4.2% (Construction).
• Sales promotion – 4.1% ((Service).
• Supply of food prepared mainly for home consumption – 2.9% (Service).

Five activities with the highest concentration of MSE

• Retail trade of clothing and accessories – 3.4% (Trade).
• Retail trade of general merchandise, with a predominance of food products, mini-markets, grocery stores and warehouses – 2.8% (Trade).
• Cafeterias, tea houses, juice shops and similar – 2% (Service).
• Restaurants and similar – 2% (Service).
• Combined office and administrative support services – 1.9% (Service).

Source: Agência Sebrae