Working capital is insufficient for 51% of small industries in SP
Datafolha survey at the request of Simpi highlights high interest rates and lack of adequate lines
The share of companies with insufficient working capital to close the month grew from 41% in April to 51% in May, according to an indicator prepared by Simpi-SP (Sindicato da Micro e Pequena Indústria do Estado de São Paulo) in conjunction with Datafolha .
This is the highest level since April 2021. There are still 39% of companies with working capital in the exact measure of their needs and 10% with more than enough value to close the month.
According to the survey, 40% of companies point to the interest rate as the main difficulty for taking out loans, and 28% see the lack of adequate credit lines for the size of the company as the main obstacle.
In May, 12% of industries consulted for borrowing. Of these, 21% were successful, and 70% received a negative response.
Joseph Couri, president of Simpi-SP, says that, in addition to the increase in the cost of credit, companies face difficulties related to the cost of production. According to the survey, 79% cite problems with prices of raw materials and inputs in the 15 days prior to the survey.
The survey was carried out by telephone, from May 9 to 30, with companies in the State of São Paulo.
“The increase in inflation makes companies need more working capital to produce the same volume, taking more and more expensive and more selective money, even because of the risk of default”, says Joseph Couri, president of Simpi- SP
According to him, the federal government’s last line for smaller companies was Pronampe (National Support Program for Micro and Small Companies), which should be resumed at the end of July.
Pronampe was created in 2020 to support micro and small businesses affected by the new coronavirus pandemic. Initially temporary, the program became permanent and became one of the Bolsonaro government’s bets to stimulate the economy. In the new phase, it started to include the MEIs (Individual Microentrepreneurs).
“The problem is whether this will really reach the end. We hope so”, says Couri. “[Em 2020]only 7% of companies had access to the line.”
Also according to the survey, 38% of businessmen assess the situation of the Brazilian economy as bad or very bad, 37% as regular, and for 24% the situation is excellent or good.
For the coming months, 63% say that inflation will increase and 8% predict a fall. About half (49%) believe that unemployment will remain stable, 22% expect a fall and 28%, an increase