Small Businesses Drive Employment and Recovery in Rio Grande do Sul and Minas Gerais in 2025
Small businesses in Rio Grande do Sul and Minas Gerais fostered job growth and economic resilience in 2025, with continued optimism for expansion in 2026 despite challenges.
- • 47% of small business owners in Rio Grande do Sul saw 2025 as better than 2024 due to recovery and export growth.
- • 40% of RS small businesses took loans mainly for debt repayment from banks like Sicredi and Banco do Brasil.
- • In Minas Gerais, small enterprises created 81,639 jobs, offsetting layoffs in larger companies.
- • Services, commerce, and industry led job growth in Minas Gerais, while construction declined.
Key details
In 2025, small businesses played a crucial role in supporting economic recovery and employment in the Brazilian states of Rio Grande do Sul and Minas Gerais. Despite challenges like floods and droughts in Rio Grande do Sul and sectoral shifts in Minas Gerais, small enterprises demonstrated resilience, job generation capacity, and optimism for 2026.
According to a survey by Sebrae RS, 47% of small business owners in Rio Grande do Sul believed 2025 was better than 2024, mainly due to recovery efforts from devastating floods and increased export and industrial production. However, 32% reported difficulties stemming from the lingering effects of natural disasters, such as reduced agricultural output due to drought. Forty percent of these businesses sought loans primarily to repay debts, accessing funds from institutions like Sicredi, Banco do Brasil, and Sicoob. Looking forward, 60% plan to expand, with 45% aiming to hire more staff despite concerns over diminished purchasing power, inflation, high credit costs, and labor shortages.
In Minas Gerais, formal job creation reached 79,008 in 2025, a 43% drop from the previous year, according to Sebrae Minas based on Caged data. Notably, micro and small enterprises generated 81,639 new jobs, offsetting layoffs in larger companies. Services, commerce, and industry were standout sectors, while construction faced decline. The Sul de Minas region added nearly 10,000 jobs, driven by municipalities such as Pouso Alegre, Extrema, and Paraisópolis. Key economic contributors included coffee cultivation and healthcare services. Analyst Marcílio Duarte from Sebrae Minas forecasts moderate growth in 2026, supported by mining and agriculture.
Together, these insights highlight how small enterprises are pivotal in Brazil’s regional economies, fostering job creation and stability amid economic and environmental challenges. The outlook for 2026 remains cautiously optimistic, anchored by the determination of small business owners to grow and innovate.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
