Niche and Small Businesses Drive Brazil's Economic Growth with Over One Million Jobs Created in 2025
Micro and small businesses in Brazil created over one million jobs in 2025, with significant growth in the fashion and beauty sectors driving economic development amid pandemic-era challenges.
- • Micro and small businesses generated 1,030,434 formal jobs in 2025, representing 80% of Brazil's total job creation.
- • Beauty sector saw 236,000 new businesses in 2025, with a focus on biosafety and personalized services.
- • IV Store started with R$ 500 during the pandemic and now earns over R$ 4 million annually through own clothing production.
- • Discussions on updating Simples Nacional tax system aim to benefit small enterprises and stimulate job growth.
Key details
Brazil's micro and small businesses have become essential pillars of formal employment, generating over one million jobs in 2025 and showcasing robust growth in specialized sectors such as fashion and beauty. According to Sebrae and CAGED data, these businesses created 1,030,434 formal jobs, accounting for approximately 80% of the country's total job creation of 1,279,498 in 2025. The services sector led with around 694,000 jobs, followed by commerce with 247,000. Regionally, the Southeast generated 414,000 jobs and the Northeast added 287,000. Although this year saw the lowest job creation numbers since 2020, small enterprises remain vital to Brazil's economic landscape.
Entrepreneurship intensified particularly in the beauty sector, where 236,000 new businesses opened nationwide in 2025 — an average of nearly 27 beauty businesses every hour. This marks an 18% increase from the previous year, with most new establishments registered as micro-entrepreneurs (MEIs), representing 94% of this growth. Success in beauty hinges on biosafety, cleanliness, personalized care, and sustainability. For example, INTRI&CO salon in Cabo Frio incorporates a holistic model with psychologists and nutritionists addressing emotional and nutritional wellbeing, alongside aesthetic services.
In the fashion niche, Inaiara Viana’s IV Store exemplifies the entrepreneurial surge fueled by pandemic challenges. Starting with only R$ 500 in overdraft and operating as a side business, IV Store now generates over R$ 4 million annually. It evolved from reselling products to manufacturing its own clothing through women-led workshops, expanding from home operations to a dedicated facility. Inaiara’s story highlights the importance of swift decision-making, cost control, and market adaptation during crises.
Despite a slowdown in overall job growth compared to the peak in 2021, these developments emphasize the critical role of small and niche businesses in innovation and employment. The Confederação das Associações Comerciais e Empresariais do Brasil (CACB) urges adjustments to the Simples Nacional tax system to support such entrepreneurs further, potentially boosting economic activity and demand for labor.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
