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Market loses 70.8 thousand enterprises between 2015 and 2016

Section: Economic Statistics | Irene Gomes | Design: Marcelo Barroso

October 03, 2018 10h00 AM | Last Updated: October 04, 2018 11h51 AM

#praCegoVer Prédios empresariais de São Paulo

In 2016, 719.5 thousand enterprises closed their doors, whereas 648.4 thousand kicked in, according to the Demography of Enterprises ans Statistics of Entrepreneurship 2016 study, released today by the IBGE. As a result, the business market lost 70.8 thousand enterprises, maintaining 4.5 million active enterprises in 2016.

This was the third consecutive year in which the balance of enterprises that entered and left the market remained negative. In 2014, the drop in the number of active enterprises was of 4.6%; in 2015, of 0.1%; and, in 2016, of 1.6%.

The study pointed out that the entry rate – relation between the enterprises that kicked in and the total – fell for the seventh time in a row, changing from 15.6% in 2015 to 14.5% in 2016. The exit rate, on its turn, rose from 15.7% to 16.1%, pointing out that a higher proportion of enterprises closed their doors in 2016. The survival rate – proportion of enterprises that remained in the market from one year to the other – increased from 84.4% to 85.5%, the highest one in the time series.

Having reduced 4.8%, which represented less 1.6 million persons, the contingent of salaried persons registered the second drop in a row. In 2015, active enterprises had 33.6 million persons, which fell to 32.0 million in 2016.

Despite the balance in the generation of jobs between entry and exit movements was positive in 232.2 thousand persons, surviving enterprises also lost salaried persons. "Part of the surviving enterprises reduced their sizes between 2015 and 2016, i.e., they were shrinking", explained Kátia Carvalho, IBGE researcher who worked in the study.

Employed persons in high-growth enterprises falls 23.6%

In 2016, 20,998 high-growth enterprises employed 2.7 million salaried persons The number of high-growth enterprises reduced 18.6% and the salaried employed persons, 23.6% over the previous year.

High-growth enterprises are those that increased the number of employed persons at least by 20% per year, on average, for three years in a row, and that had 10 or more salaried employed persons in the first year of observation.

In 2016, the number of salaried persons rose 176.2% in these enterprises, changing from 966.7 thousand salaried persons in 2013 to 2.7 million in 2016, an increase of 1.7 million employed salaried persons.

 "High-growth enterprises represented only 0.9% of the enterprises with salaried persons, though they employed 8.3% of the salaried persons in these enterprises, which shows the importance of such small number of enterprises in the Brazilian formal market", explains Denise Guichard, one of the IBGE researchers in charge of the study.

She also pointed out that the services activity has been taking root in the whole set of high-growth enterprises: "while sectors like construction have been losing share, the services activity has been gaining importance, highlighted by the increase reported in the sector of information and communication", added her.

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