Brazil's Entrepreneurial Landscape Booms in 2024 Amid Challenges and Lessons in 2025

Brazil saw a remarkable surge in entrepreneurship in 2024, achieving its highest rate in four years, with 33.4% of adults engaged in business activities, according to a report by Sebrae and Anegepe. This represented an increase from 31.6% in 2023, positioning Brazil among the world’s top ten countries for entrepreneurship. The rise includes a significant growth in established entrepreneurs, who grew from 8.7% in 2020 to 13.2% in 2024. This trend signifies the maturation of Brazilian entrepreneurship, driven by opportunity rather than necessity, leveraging digital tools and emphasizing social and environmental responsibility.

Jhonny Martins, vice president of SERAC, highlighted that the new generation of entrepreneurs is more strategic, focusing on scalable and sustainable financial models. Key sectors propelling growth include technology, corporate education, finance, and specialized services, supported by improved access to digital platforms. Additionally, small and micro businesses increasingly prioritize social and environmental impact, adopting ESG principles.

However, 2025 brought substantial challenges. By May 2025, 6.7 million micro and small businesses were in default, a 5.2% increase from 2024, as reported by Serasa Experian. High interest rates and restrictive credit availability pressured many entrepreneurs, emphasizing the importance of financial discipline and customer relations.

Fábio Saraiva, president of CONAJE, emphasized that success depended not on experience but on adaptability and rapid strategy shifts. CONAJE outlined five critical lessons from the year: maintaining cash flow amid expensive credit and late payments, prioritizing strong customer relationships, adapting quickly to economic and technological changes, making swift decisions to limit losses, and utilizing entrepreneurial networks for support and knowledge exchange. Saraiva noted that many difficulties could have been prevented with better cash control, reduced loan dependence, and efficient inventory management.

Together, these findings paint a comprehensive picture of Brazil's entrepreneurial environment—a rapidly growing ecosystem facing real economic hurdles but learning vital lessons that will shape more resilient business practices in the future.