In 2020, Brazil had 4.87 million active companies, employing 39.4 million people, of which 32.4 million (82.3%) were salaried and 7 million (17.7%) were partners or owners.
Despite the COVID-19 pandemic, the balance of businesses joining and leaving the market was positive in 2020. A total of 826,400 firms entered the market and 634,400 left, a difference of of 192 thousand.
The figures were released this week by statistics agency IBGE.
The lower number of companies leaving the market in 2020 compared to 2019 is attributed to factors such as public policies helping them survive and the uncertain duration of the pandemic.
The average age of businesses was 11.6 years in 2020—the same as in 2018 and almost the same as in 2019, 11.7 years.
Balance
The highest balance of companies in 2020 went under trade and auto repair—39 thousand. The biggest losses were seen for lodging and food, which lost 4,981.
Lodging and food, research manager Thiego Ferreira noted, employ mostly women. The study observed that the proportion of women employees in companies that went out of business (44.1%) was higher than in those that entered the market (40.5%).
“These variations may be linked to health policies adopted during the pandemic, such as the prohibition of waiting tables in bars and restaurants, the temporary shutdown of cultural facilities, and the suspension of crowd-gathering artistic and sporting activities,” IBGE stated.
