Brazil Sees Record Surge in Small Business Registrations in Early 2026

Brazil experienced a record-breaking surge in new small business registrations during the first two months of 2026, with a total of 1,033,208 new businesses established, marking a 3% increase from the prior year. This significant growth, highlighted in a Sebrae study using data from Receita Federal, reflects the country's robust micro and small business sector.

Microentrepreneurs (MEIs) constituted the majority of these new registrations at 79.5%, while micro and small enterprises (MPEs) made up 17% and 3.5%, respectively. The services sector led the expansion, registering a 7.3% increase from 2025 and generating the bulk of new formal jobs. In fact, micro and small businesses were responsible for creating over 1 million formal jobs in 2025, specifically 1,030,434 jobs, with 694,000 originating from the services sector alone. The Southeast and Northeast regions of Brazil were the hotspots for this job growth.

Despite these gains, total job creation in 2025 was still the lowest since 2020, prompting concern among business associations. The Confederação das Associações Comerciais e Empresariais do Brasil (CACB) is advocating for an 83% adjustment in the Simples Nacional tax table, which has remained unchanged since 2018, aiming to better support micro and small enterprises in their expansion and sustainability.

This unprecedented rise underscores the critical role of small businesses in Brazil's economic landscape, emphasizing the need for updated fiscal policies to sustain and amplify this momentum. As new enterprises continue to emerge, the government's and private sector's ability to adapt policies could define the future trajectory of Brazil's entrepreneurial ecosystem.