Micro and Small Businesses Boost Brazilian Economy, Supporting Millions
Micro and small businesses significantly contribute to Brazil's economy, supporting millions and creating jobs in 2024.
- • In 2024, MPEs generated R$ 717 billion in income.
- • 45% of the Brazilian population relies on micro and small enterprises.
- • 72.6% of formal jobs in Brazil are created by MPEs.
- • Only 39% of entrepreneurs regularly contribute to social security.
Key details
In 2024, micro and small enterprises (MPEs) have become a cornerstone of the Brazilian economy, generating an impressive estimated income of R$ 717 billion, as highlighted in the latest Sebrae report. This sector supports roughly 45% of Brazil's population, amounting to approximately 97 million individuals, with 43.7 million relying solely on these businesses for their livelihood.
According to Décio Lima, president of Sebrae, micro and small businesses are pivotal to job creation and social inclusion in Brazil. In fact, they created 72.6% of formal jobs in 2024, showcasing their significant influence in the labor market. The income figures reveal that individual micro-entrepreneurs (MEIs) contributed R$ 224 billion, while the broader category of micro and small enterprises added R$ 492 billion to the economy. The average monthly income for MEIs stood at R$ 5,542, and for MPEs, it was significantly higher at R$ 13,422.
The entrepreneurial landscape in Brazil is vibrant, with the country ranking fifth globally for entrepreneurship. Approximately 33.4% of adults are currently engaged in business activities. A notable increase has been seen in the number of MEIs, which surged over 250% in the past decade, largely due to legal reforms that simplified business formalization processes.
Despite these achievements, challenges persist. Many entrepreneurs experience vulnerabilities, with only 39% contributing regularly to social security. The increase in necessity-driven entrepreneurship, particularly among low-income women, highlights the socio-economic pressures faced by many. Issues such as high business mortality rates and limited access to credit further complicate survival and growth prospects for these enterprises.
To enhance sustainability and growth within this vital sector, Sebrae advocates for reforms—including the updating of MEI revenue limits and bolstering the Simples Nacional tax framework. Lima also emphasized the importance of progressing Tax Reform and related measures in Congress to support these entrepreneurs' aspirations.