Brazil's Microentrepreneurship and Small Business Sectors Surge in 2025 with Record Growth in Bakeries and Beauty

Brazil experienced significant growth in its microentrepreneurship and small business sectors throughout 2025, marking a historic milestone for the nation's economic fabric. According to Sebrae, the number of microentrepreneurs and small businesses soared to a record 4.6 million — representing 97% of all Brazilian companies and contributing 26.5% of the country’s GDP. Despite this robust growth, challenges remain in credit access and the need for enhanced digitalization and innovation to boost competitiveness and productivity. The stagnation of the Microempreendedor Individual (MEI) revenue cap at R$81,000 since 2018, despite inflation, has been a limiting factor. Legislative proposals, such as PLP 60/2025, aim to raise the cap to R$140,000 to encourage formalization and growth.

Sector-specific growth was equally remarkable. The bakery industry opened 75,000 new establishments in 2025 — a 26% increase over 2024 — with microentrepreneurs comprising roughly 90% of these new ventures. The sector generated R$153.3 billion in revenue in 2024, up 10.9%, and reached the highest employment level in 15 years with 568,000 formal workers by mid-2025. Industry leaders highlight emerging trends such as artisan and organic products alongside digital marketing as essential elements for sustaining competitiveness.

In São Paulo’s beauty sector, growth was similarly robust, with 67,944 new beauty businesses registered statewide in 2025. The municipalities of Tatuí and Sorocaba alone accounted for 174 and over 3,000 new businesses respectively. Entrepreneurs are motivated primarily by passion and a desire for autonomy, with average start-up investments around R$4,905. Many beauty establishments also supplement income through product sales, which contribute approximately a quarter of revenue.

These expansions underscore the critical role of small businesses as engines of income generation and employment in Brazil. Experts like economist Ana Claudia Arruda stress the importance of supportive policies that ease credit restrictions, modernize digital tools, and update regulatory frameworks to sustain growth. The formalization benefits offered by CNPJ registration — including credibility, simplified taxation, and improved financial access — remain crucial incentives for entrepreneurs to thrive in Brazil’s dynamic market.