In 2010, the exit rate in enterprises decreased by 1.4 percentage points in relation to that of 2009, having changed from 17.7% to 16.3%. In the year, 736.4 thousand enterprises closed doors. On the other hand, 999.1 thousand enterprises joined the market, causing the entry rate to be stable at 22.1%. As a result, there was increase of 6.1% (216.7 thousand) in the total number of active enterprises in Brazil.  Concerning company survival, it was observed that almost half of the enterprises did not survive beyond the third year of entry in the market (2007-2010.  The total number of salaried jobs increased 9.1% (2.6 million) from 2009 to 2010, and the entering enterprises accounted for a million new vacancies, out of which 35.6% (364.7 thousand) were created in the Trade segment. The number of high-growth enterprises increased 7.7% in 2010, and that of gazelle enterprises, by 5.2%.  Trade was the segment recording the biggest participation among high-growth enterprises: 26.6%. The salaried personnel of these enterprises (4.99 million) represented 16.2% of the total formal salaried positions, a level of participation below that of 2009 (16.6%). However, considering the 5.5 million new jobs generated by all enterprises between 2007 and 2010, high-growth enterprises accounted for 58.2% (3.2 million). The activity which generated most salaried posts in this period was Manufacturing Industry, with 23.3% (742.3 thousand). 

The study Demography of Enterprises promotes the analysis of business dynamics though entry, exit, reentry and survival indicators of enterprises in the market, salaried employed persons, mobility by size, statistics of high-growth and gazelle enterprises, besides indicators related to local units of enterprises and activities. See the complete publication at https://www.ibge.gov.br/home/estatistica/economia/demografiaempresa/2010/default.shtm

Exit rate of enterprises falls by 1.4 percentage points in 2010 

In 2010, 736,428 enterprises exited the market, what represents an exit rate of 16.3%, in a total 4,530,583 active enterprises. The rate fell 1.4 percentage points over 2009 (17.7%), when 755.154 enterprises, out of a total 4,268,930, were no longer active. At the same time, the entry rate remained stable, having changed from 22.2% (946,676 enterprises) in 2009 to 22.1% (999,123) in 2010. As a result, the balance of total enterprises was positive, with increase of 6.1% (more 261.7 thousand enterprises). 

The North and Northeast Regions were the ones recording the biggest decreases in the exit rates, having changed from 22.3% in 2009 to 19.6% in 2010, in the North Region, and from 20.1% to 17.4%, in the Northeast. All the states recorded decline; in Acre the decrease reached 12.4 percentage points.

By activity the biggest decreases were observed in the sections Financial and insurance activities and related services (-4.0 percentage points); Water, sewage, residue management and decontamination activities (-3.8 percentage points) and Construction (-2.2 percentage points).   

One out of each five enterprises is new in the market

The number of enterprises which entered the market in 2010 (999,123) was 5.5% above that of 2009 (946,676). The entry rate of 22.1% means that one out of each five enterprises in activity in 2010 was a new one.  By economic activity, the biggest entrance rates were those of Construction (31.2%), Electricity and gas (29.1%) and Other service activities (28.5%). 

Concerning enterprises which left the market, Arts, culture, sports and recreation (20.0%), Other service activities (19.8%) and Information and communication (19.5%) were the activities which recorded the highest exit rates, significantly above the average of 16.3%.

Enterprises surviving in the market after three years of entry make up 51.8%

Out of the 464.7 thousand enterprises which featured in the market in 2007, 353.6 thousand (76.1%) had survived in 2008; 285.0 thousand (61.3%) stayed in the market until 2009 and 240.7 thousand, until 2010 (51.8%). After three years of entry in the market, almost half (48.2%) of the enterprises were already closed.

The activities which recorded the highest survival rates from 2007 to 2010 were: Human health and social services (61.4%), Electricity and gas (60.8%) and Water, sewage, residue management and decontamination activities (57.4%). The lowest survival rates were those of Arts, culture, sports and recreation (45.6%) , Other service activities (46.5%) and Financial and insurance activities and related services (47.4%).

54.7% of the enterprises without salaried persons left the market in the third year of activity

It is also observed that the survival rate is directly related to the size of the enterprise. In 2010, in the enterprises without salaried personnel which entered the market in 2007, the survival rate was 45.3%; in enterprises with 1 to 9 salaried persons, the rate was 70.3% and in those with 10 or more employed persons it was 80.2%.

Consequently, bigger enterprises, with more fixed assets tend to remain longer in the market, since, among other factors, exit costs are usually high. In enterprises without salaried persons, 45.2% were no longer active in the second year after entry to the market. However, considering the exit rate of enterprises by size, from 2009 to 2010, there was widespread reduction, having the most significant figure been observed in enterprises without salaried persons (-1.8 percentage points).

New enterprises generate a million salaried jobs in 2010

In 2010, enterprises which are active in the Central Registry of Enterprises employed 37,184,416 persons, among whom 30,821,123 were salaried professionals and 6,363,293 were partners or owners.  Entering enterprises generated a total of 2,294,015 new job posts, being 1,023,753 salaried ones. These enterprises also accounted for 6.2% of the total increase in employed persons and of 3.3% in salaried employed persons.

Enterprises which exited the market carried with them 1,318,293 job posts, being 363,848 salaried ones. That represents decrease of 3.6% in total employed persons and of 1.2% in salaried persons.  The balance, considering entering, surviving and exiting enterprises, remains positive:  from 2009 to 2010, there was increase of 8.2% in total employed persons (2,830,242) and of 9.1% in salaried employed persons (2,582,415).  

Trade generates 35.6% of the new salaried jobs

Among jobs generated by enterprises entering the market, 364,701 (35.6%) were created in Trade: repair of motor vehicles and of motorcycles; 151,965 (14.8%) in Manufacturing Industry and 150,265 in Construction (14.7%).  In terms of salaried persons from enterprises which left the market, 112,098 (30.8%) belonged to Trade; repair of motor vehicles and motorcycles; 77,160 (21.2%) to Manufacturing Industry and 40,657 (11.2%) to Management activities and complementary services.

Enterprises in the South 979.3%) and Southeast (78.9%) present the highest survival rates

Out of the 4.9 million local units, 3.8 million had survived in relation to 2009 77.9%), 1,078.8 thousand represented entries (22.1%) and exits amounted to 792.0 thousand enterprises (16.2%). 

The South and Southeast recorded the biggest survival rates (79.3% and 78.9%, respectively) above the national average (77.9%). However, the biggest rates of entry and exit were recorded in the North (28.5% and 19.6%) and Northeast (24.9% and 17.4%), as well as the lowest survival rates, 71.5% and 75.1%, respectively). That means these regions present a high rate of start and end of enterprises. In spite of its high exit rates, however, the North (-2.7 percentage points) and the Northeast (-2.6 percentage points) were the Regions recording the biggest decreases in the rate over 2009.

Santa Catarina (82.1%), São Paulo (79.3%) and Rio Grande do Sul (79.2%) recorded the highest survival rates. On the other hand, Acre (62.2%), Amapá (65.1%) and Amazonas (68.2%) had the lowest ones. 

In terms of distribution of salaried employed persons coming from local units in 2010, the Southeast and Northeast accounted for the biggest increases due to the creation of new enterprises, with 50.0% and 19.4%, respectively. Among the Federation Units, the highlights were: São Paulo (29.6%), Minas Gerais (10.0%) and Rio de Janeiro (8.8%). The lowest gains in terms of salaried persons were observed in Roraima (0.2%), Acre (0.3%), Amapá (0.3%) and Tocantins (0.5%).

Number of high-growth enterprises increases 7.7% in 2010

High-growth enterprises are those which record average increase of salaried persons equals to or above 20% a year, for a period of three years, and that employ at least ten salaried persons in the starting year of observation. The enterprises known as “gazelles” are high-growth enterprises with up to eight years on existence in the year of reference.

In 2010, there were 33,320 high-growth enterprises, at a rate of 7.9% (in relation to enterprises with ten or more salaried professionals) the same rate as in 2009. In relation to the total enterprises, high-growth ones represented 0.7%.  The number of high-growth enterprises increased 7.7% over 2009, being above the increment recorded by the group of enterprises, 6.1%.  

“Gazelle” enterprises amounted to 12,427 and had a rate of 7.2% (in relation to the enterprises with ten or more salaried workers and up to eight years of existence), being below, as a result, of the rate recorded in 2009 (7.4%).  

Compared to figures in 2009, the number of “gazelle” enterprises increased by 5.2%. Their participation in the total high-growth enterprises fell from 38.2% in 2009 to 37.3% in 2010. This decrease caused the average age of high-growth enterprises to rise, resulting in a chnage from 13.3 years in 2008 to 13.7 years in 2010.

Concerning the salaried personnel, high-growth enterprises employed 4,995,925 persons, what represented 16.2% of the total 30.8 million formal salaried jobs in enterprises. This level of participation is below that of high-growth enterprises in 2009 (16.6%). The participation of “gazelle” enterprises relative to salaried persons was 4.3% in 2010, the same percentage as in 2009.

From 2008 to 2010, Construction rose 0.9 percentage points in high-growth enterprises

In 2010, the section Trade; repair of motor vehicles and of motorcycles was a highlight among high-growth enterprises, with 26.6%, followed by Manufacturing Industry, 24.6% and Construction, 13.1, the same activities which had been a highlight in 2009.

In 2008, Manufacturing Industry were in the first position,  with 27.4% of the high-growth companies, being followed by Trade and Construction in the second and third positions, respectively.

It is important to highlight that Construction, in spite the third position in the three years analyzed, had recorded bigger relative participation each year, having changed from 12.2% in 2008 to 13.1% in 2010, with increase of 0.9 percentage points.  On the other hand, there was decrease of 2.8 percentage points in Manufacturing Industry, from 27.4% in 2008, to 24.6% in 2010.

It is important to highlight that Construction, in spite the third position in the three years analyzed, had recorded bigger relative participation each year, having changed from 12.2% in 2008 to 13.1% in 2010, with increase of 0.9 percentage points.  On the other hand, there was decrease of 2.8 percentage points in Manufacturing Industry, from 27.4% in 2008, to 24.6% in 2010.

High-growth enterprises account for 58.2% of the jobs generated between 2007 and 2010

Salaried persons in high-growth enterprises recorded increase from 1.8 million in 2007 to almost 5.0 million in 2010, with expansion by 175.4%, representing 3.2 million new jobs.  In this period, the number of salaried employed persons in all enterprises rose by 21.7%, having changed from 25.3 to 30.8 million persons.  As a result, high-growth enterprises accounted for 58.2% of the total and for 5.5 million new formal jobs generated by enterprises between 2007 and 2010.  

Among the activities, Manufacturing Industry accounted for 23.3% of the increase of salaried persons; Construction, for 18.7%; Management activities, for 17.5% and Trade; repair of motor vehicles and of motorcycles, for 14.6%. Together, these four activities accounted for 74.1% (2.3 million) of the increase of salaried employed persons between 2007 and 2010. The other economic activities accounted for 25.8% of the increase.