Variety of new corporations will increase by 25% after the pandemic

The number of new companies in the country during the pandemic (between 2020 and 2022) grew by 25.3%, compared to the three years before Covid-19 (between 2017 and 2019).

Data from the federal government were collected by the Yooga platform and show that 94% of new businesses are micro-entrepreneurs initiatives, directly impacted by the conditions imposed by the health and economic crisis.

According to the survey, the growth is explained by the abrupt change in people’s income during the pandemic, with a drop in purchasing power and an increase in unemployment.

The platform’s CEO, Vinícius Melo, explained that many of these new entrepreneurs are people who lost their previous job and started to see in entrepreneurship a possibility of generating income or even a unique alternative for survival.

According to the platform, between 2017 and 2019, there were 232,070 small companies and 246,531 of other sizes open in Brazil.

Between 2020 and 2022, 305,254 small businesses started operations, while 255,597 companies of other sizes also started operations.

According to the report, during the pandemic the state in which the most companies opened was São Paulo, with 2,909,253 new businesses. Then come Minas Gerais (1,084,616), Rio de Janeiro (934,486), Paraná (695,480) and Rio Grande do Sul (607,755).

In the country, the average time required to open a business is 37 hours. The waiting time can reach 77.9 hours in Bahia. Or be much faster, as in Sergipe (13.8 hours).

On the other hand, the platform reported that the number of companies that closed down was lower in the pandemic period (3.6 million) than in previous years (4.5 million).

Source: CNN Brasil