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Enterprise Pulse Survey

Six out of every ten enterprises experience negative effects of the Covid-19 pandemic

Section: Special Series | Carmen Nery | Design: Helga Szpiz

July 30, 2020 09h00 AM | Last Updated: July 31, 2020 02h31 PM

#PraCegoVer A foto mostra uma rua com restaurantes vazios
Pandemic affected 65.5% of the 1.2 million enterprises in the services segment - Photo: Tomaz Silva/Agência Brasil

Among the 2.8 million enterprises in operation in the second half of June, 62.4% felt negative effects of the novel coronavirus pandemic on their activities. The impact was bigger in small-sized enterprises, with up to 49 employees – the majority of the sample – out of which 62.7% observed negative results; against 46.3% of medium-sized enterprises, with up to 499 employees, and 50.5% among large-sized ones, with 500 or more employees. The data comes from the Enterprise Pulse Survey, released today (30) by the IBGE.

The pandemic has affected 65.5% of those 1.2 million services enterprises, mainly the ones of services rendered to families (86.7%); and also 64.1% of those 1.1 million enterprises in general trade, with a bigger perception of negative effects on the segment of  vehicles, pieces and motorcycles (74.9%). In industry, negative effects were reported by 48.7% of the 306 thousand enterprises; and, in construction, by 53.6% of the 153 thousand companies in the sector.

“Services rendered to families encompass bars, restaurants and hotel, activities that depend on the circulation of persons, on tourism and traveling. So, a bigger impact on those activities was already expected. The vehicles, pieces and motorcycles segment was also affected by the partial functioning of Detrans (Departments of Motor Vehicles) and car dealerships  besides the relevance of such a decision, the purchase of a durable good during a period of unemployment and uncertainty”, says Flávio Magheli, coordinator of the IBGE’s Short-Term Enterprise Surveys.

Among the Major Regions, the Northeast is the place where enterprises were most affected by the novel coronavirus crisis (72.1%), followed by the Southeast (65%) and Central West (62.9%).

Half of the enterprises recorded reduction in sales 

For half of the enterprises in operation (50.7%), there was reduction in sales, notably among small-sized ones. Effects were small or inexistent in 2.7% of the enterprises, a percentage that reaches 41.2% of big-sized enterprises, which were the least affected ones. And for 21.4% of the enterprises, there was increase of sales in the second half of June. 

The sectors of trade and services were the ones reporting makor decreases in sales, especially trade of vehicles, pieces and motorcycles and if services rendered to families, both with 62.2%.