Six out of 10 companies opened in Brazil close their doors before 5 years

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After a period of decline, Brazil has once again registered an increase in the number of company openings. In the first four months of this year, 1.3 million enterprises, whether small, medium or large, started their activities in the country, according to the Business Map, a tool of the Ministry of Economy that shows indicators related to the number of companies registered in the country.

Of all the companies that had their doors opened this year, 79% of them are MEIs (micro Individual Entrepreneur) and the other 21% are divided into micro, small and large companies. According to the Map of Companies, the average time for these companies to be opened is around one day and 16 hours, which corresponds to a historical record. Sergipe was the state in Brazil that had the shortest time to open a business in the first 4 months, around 15 hours, which represents a drop of 9 hours, 37.5% less compared to the four-month period from 2021. In Bahia, the record was longer, about 3 days and 17 hours.

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This increase in the number of companies listed in the first four months of 2022 still does not mean that the economy has improved. The 11.5% increase is compared to the last quarter of 2021. If a comparison is made with the same period in 2021, the percentage drops to negative 3.2%, which in any case shows a slow recovery, which cannot be ignored.

It is noteworthy that in the period in which 1.3 million companies were created, another 541 thousand were closed. According to information from the Brazilian Institute of Geography and Statistics (IBGE), around 40% fewer companies are able to survive after five years in this activity, that is, out of every 10 companies, six close their doors before completing 5 years of existence. existence.

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