Brasília – The number of new businesses in Brazil was up 6% in 2020 from 2019, according to the annual Business Map bulleting from the Brazilian Ministry of Economy. Last year saw 3,359,750 enterprises open in Brazil. The number of companies that went out of business is 1,044,696, resulting in 2.3 million active enterprises in the country. The number of companies that ceased to exist was down 11.3%.
According to the Ministry, the number reflects government measures designed to facilitate startups amid the Covid-19 pandemic, which led many to seek an income through entrepreneurship. The majority of active enterprises in Brazil – nearly 50% – are in the states of São Paulo, Minas Gerais and Rio de Janeiro.
The Ministry of Economy’s e-Government secretary Luís Felipe Monteiro remarked that the bulk of enterprises are in the tertiary sector. “The tertiary sector accounts for the bulk of these startups, especially retail and services, which are more than 80% of active businesses in the segment,” said Monteiro.
Translated by Gabriel Pomerancblum