The 2002 Statistics of the Central Registry for Companies, just released by the IBGE, registered approximately 5 million active companies and other organizations in 2002 and indicated an increase in the number of local units (address of companies’ activities) in municipal districts from the interior. The capitals, historically considered as the main centers of production, started to lose ground to other municipal districts, decreasing their shares, confirming a trend of the interiorization of the economy.

While the capitals registered an increase of 33.9% in the number of local units, the other municipal districts in the interior had an increase of 45.5%. The same happened with regards to employed personnel, that increased 11.4% in the capitals and 31.8% in the interior.

The distribution of units, according to location, demonstrates that, between 1997 and 2002, the capitals lost a relative share to other municipal districts, both with regards to the number of units, as well as employed personnel.

In 1997, the capitals had shares of 32.4% and 40.9%, with regards to the number of local units and employed personnel, respectively, passing to have 30.6% and 36.9% in 2002. In the meantime, the other municipal districts, that had shares of 67.6% and 59.1%, for local units and employed personnel, respectively, passed to have 69.4% and 63.1%, in 2002.

Obs.: See in appendix tables with data pertaining to the units in the federation and municipal districts.

The 24 largest municipal districts correspond to a third of the Country’s total local units

In 2002, the 24 largest Brazilian municipal districts together corresponded to a third to the Country’s total local units and for 39% of the total employment, revealing a high degree of production concentration in these cities.

The municipal district of São José do Rio Preto stood-out as the one that registered the highest growth rate in the number of local units (57.1%) between 1997 and 2002.

On the other hand, Brasília was the city that registered the greatest growth rate for employed personnel (35.4%), as a consequence of a significant increase (54.4%) in the number of local units.

The North and Northeast regions have the greatest growth rates between 1997 and 2002

The regional analysis’s study refers to the years 1997 and 2002. In spite of concentrating the largest contingent of local units in the Country, the Southeast region decreased its national share, passing from 52.8% to 51.4%. In addition, it registered the lowest growth rate for the number of local units in the period (37.9%) and, along with the South region (40.2%), had a lower growth than the Brazilian average (41.6%).

The highest growth rates, in terms of local units, were found in the North (56.2%) and Northeast (50.3%) regions, respectively.

São Paulo and Rio de were the states with the lowest relative growth in employed

The two states also decreased their relative share in number of local units, in addition to registering growth rates that were lower than the national average (41.6%).

Rio de Janeiro and São Paulo were the states with the lowest relative growths in the number of employed personnel, with rates of 12.9% and 16.3%, respectively.

The federation’s units that grew the most were Roraima, Amapá and Pará, with growth respective rates of 82.5%, 79% and 68%. These states also led the relative growth for employed personnel, with rates varying between 50 and 54%.

Number of companies that only operate with owners and partners increased 6.3% in 2002

Out of the total number of companies and other organizations that are active (five million in 2002), the Central Registry of Companies determined that 90.5% of them were business entities, 0.3% were public administration agencies (central administration, education, health, defense and security) and 9.2% were non-profit organizations, all being registered with the National Registry for Legal Entities.

The growth in the number of companies and other organizations was of 6.1%, well below the growth rate for the previous year (11.4%). The employed personnel, compared to 2001, registered growth in the number of partners and owners (12.3%) that was well above the growth registered by the total wage-earning personnel (5.7%). The wage earning mass increased 12.6% in nominal terms and 0.2% in real terms.

Among the activities that registered the greater growth rates, both in the number of companies as in employed personnel, the following may be highlighted: Fishing, with 28.0% and 36.5%, respectively; Other collective, social and personal services with 11.1% and 21.0%, (that includes Urban sanitation and sewage activities; associative activities; recreational, cultural and sports activities, laundries, hairdressers, physical-body maintenance activities, etc.), and Real-estate activities, rentals and services offered to companies, with 8.3% and 10.4%. In terms of the number of companies, another highlight was the Transport, Storage and Communications activity, with an 8.6% increase compared to 2001.

Another highlight from this sturdy that may be included is the 6.3% growth in the number of companies that only operate with owners and partners and the increase of the mortality rate for companies from 9.0%, in 2001 to 10.9% in 2002.

3.1 million companies that only operate with owners and partners

In 2002, out of the total of 4.5 million active companies, 3.1 million (68.3%) only operated with their owners, employing 4.3 million persons.

This type of company increased 6.3% compared to the previous year and the number of owners and partners increased 9.6%. By economic segment, Commerce stood-out as the main activity, concentrating 55.8% of these establishments and 50.9% of partners and owners, followed by Real-estate activities, Rentals and services offered to companies, with 13.9% of the units and 17.1% of partners and owners and by Manufacturing Industries, with 8.2% and 8.4%, respectively.

In terms of size, 99.4% of these establishments had up to 4 owners and accounted for 96.1% of the partners and owners.

The companies that were established in 2002 were mainly classified as retail commerce for clothing items, convenience stores, and other services, such as snack bars and restaurants that are activities that usually require a low capital investment.

From 2001 to 2002, for every 10 new companies that were created, nearly 6 were closed

The demographic study for companies, that does not include Public Administration and Non-profit entities, but only the business entities, revealed that 720 thousand new companies were established in 2002 and 461 thousand were closed, resulting in a real increase of 259 thousand companies.

By economic segment, the activities that were related to Commerce were responsible for the greatest number of company births and deaths in absolute terms, contrary to Industry that registered the lowest values.

The Service and Commerce segments registered the highest birth and death rates, 18.7% and 11.1%, respectively.

The death rate for companies increased compared to last year, passing from 9.0% to 10.9%.

In the analysis by size, the study revealed that, from 2001 to 2002, the largest birth (19.1%) and death (12.5%) rates were found in companies that had up to 4 employed persons, that also concentrate approximately 94% of created companies and 96% of extinct companies. On the other hand, the lowest rates, both for births and deaths (1.8% and 1.5%, respectively), were found in establishments with 100 or more employed persons.