Brazil Sees 12% Surge in Small Business Formation in First Half of 2026
Brazil experienced a 12% increase in small business openings in the first half of 2026, driven largely by microentrepreneurs and the service sector, with São Paulo leading regional growth.
- • Brazil recorded 2.9 million new small businesses in H1 2026, a 12% rise from 2025.
- • Over 75% of new businesses were microentrepreneurs (MEIs), totaling around 2.25 million.
- • The service sector led with 1.9 million new companies, representing 64.4% of openings.
- • The Southeast region, especially São Paulo, accounted for half of the new businesses, with 1.5 million registrations.
Key details
Brazil witnessed a significant rise in small business openings during the first half of 2026, with 2.9 million new entities registered—a 12% increase compared to 2.6 million in the same period of 2025. This data, derived from the National Register of Legal Entities (CNPJ) and analyzed by DataSebrae, signals a robust resurgence in entrepreneurship across the country.
Microentrepreneurs, known as MEIs, accounted for over 75% of these new businesses, with approximately 2.25 million MEIs formed. Microenterprises followed with 534,000 openings, collectively representing nearly 93% of all entrepreneurial activity. The service sector dominated the landscape, encompassing 1.9 million new businesses or 64.4% of total openings, while commerce contributed 600,000 new ventures.
Regionally, the Southeast stood out as the leading area for new small business formation, with 1.5 million registered companies. São Paulo alone was responsible for 890,000 new business registrations. Other regions showed smaller figures but continued to contribute meaningfully.
Key business activities driving the openings included delivery services (195,000 new registrations), road freight transport (185,000), advertising (160,000), and hairdressing (136,000). Notably, the expansion of small enterprises also boosted formal job creation, with Rio de Janeiro reporting small businesses created 59% of formal jobs in the first quarter of 2026, totaling over 12,900 new positions.
Rodrigo Soares, president of Sebrae, credited the surge to the dynamic productive sector and growing public perception of entrepreneurship as a viable source of income and innovation. He highlighted the improvements in simplifying processes and reducing bureaucracy, which have enabled faster and safer business formalization.
The growth also reflects a broader labor trend, with a 19% increase in employment under the regime of legal entities (PJ) in the first quarter of 2026, underscoring new entrepreneurial-driven job opportunities.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
