In 2013, 47.5% of the enterprises that were born in 2009 were still active in the market, i.e., more than half (52.5%) of the enterprises did not survive four years after their birth. The exit rate – relation between the number of enterprises exiting and the total – declined 2.8 percentage points over 2012, changing from 17.4% to 14.6%. In the year, 695.7 thousand enterprises left the market. On the other hand, the entry rate of enterprises in the market – relation between the number of enterprises entering and the total – was 18.3% in 2013, causing a significant impact on the stock of enterprises (more 871.7 thousand enterprises). The survival rate – relation between the number of surviving enterprises and the total – was 81.7% (3.9 million). As a result, the total number of active enterprises in Brazil grew 3.8% (176.2 thousand) compared with 2012. The total number of salaried job posts rose 3.3% (1.1 million) between 2012 and 2013, and those enterprises entering in the market were responsible for 887.7 thousand new posts, 30.3% (268.6 thousand) of them in trade.

Of the total number of active enterprises in 2013 (4.8 million), 0.7% (33.4 thousand) were high-growth enterprises, as they averagely increased the number of salaried employed persons by more than 20% per year, for a period of three years, having at least 10 salaried persons in the first year of observation. These enterprises employed 14.2% (5.0 million) of the salaried persons, being construction the activity that registered the highest proportion of salaried persons in high-growth enterprises (28.1%).

These are some of the results of the Demography of Enterprises 2013 study. Based on the information from the Central Register of Enterprises – CEMPRE, the study allows the analysis of the corporate dynamics by means of entry, exit and survival indicators of enterprises in the market, salaried employed persons, statistics of high-growth enterprises and gazelles (high-growth enterprises with up to eight years of age in the year of reference), as well as of indicators related to local units of enterprises and activities. See the complete publication here.

More than half of enterprises (52.5%) exit the market after fours years of activity

Of the 694.5 thousand enterprises that were born in 2009, 536.6 thousand (77.3%) remained active in 2010, 452.5 thousand (65.2%) survived up to 2011, 387.4 thousand up to 2012 (55.8%) and 329.9 thousand (47.5%) remained in the market up to 2013. That is to say, more than half of the enterprises did not survive after fours years in the market. A direct relation with size was also noticed: after fours years in the market, the survival of enterprises without salaried employed persons was 40.9%, whereas it was 69.1% for those in the range between 1 and 9 and 76.7% for those with more than 10. Larger enterprises tended to show higher survival rates. Smaller enterprises showed a higher number of entries and exits and, consequently, lower survival rates.

In this period, the activities that posted the highest survival rates were human health and social services (61.6%), real estate activities (58.9%) and technical, scientific and professional activities (54.9%).

Exit rate of enterprises falls 2.8 percentage points in 2013

In 2013, 695.7 thousand enterprises left the market, which represented an exit rate of 14.6% in a universe of 4.8 million active enterprises. This rate dropped 2.8 p.p. in relation to 2012 (17.4%), when 799.4 thousand enterprises, in a universe of 4.6 million, were not active anymore. At the same time, the entry rate remained stable, changing from 18.7% (860.0 thousand) in 2012 to 18.3% (871.7 thousand) in 2013. As a result, the total balance of enterprises became positive, registering an increase of 3.8% in the number of enterprises (more 176.2 thousand enterprises).

Table 2 - Number of enterprises, salaried employed persons, according to type of demographic event and respective rates - Brazil - 2008-2013

Source: IBGE, Diretoria de Pesquisas, Coordenação de Metodologia das Estatísticas de
Empresas, Cadastros e Classificações, Cadastro Central de Empresas 2005-2013.

Except for Electricity and gas, all the activities recorded a drop in the exit rate of enterprises. The highest retractions were reported in other activities of services (9.0 p.p.) and in housing and food (4.3 p.p.).

Between 2012 and 2013, the total number of salaried job posts grew 3.3% (1.1 million). The enterprises that entered in the market in 2013 brought 887.7 thousand salaried persons (2.5% of the total) to the market. Although the number of entries was 1.4% higher, they represented an increase 6.6% lower in the number of salaried employed persons compared with 2012. The enterprises that left the market took 524.2 thousand salaried persons (1.5% of the total), a loss 15.7% higher in relation to 2012, despite the drop of 13.0% in the number of exits. The surviving enterprises employed 97.5% (34.2 million) salaried persons.

Trade gets the highest absolute number of salaried persons

Of the 887.7 thousand salaried persons generated by enterprises that started their activities in 2013, 268.6 thousand job posts (30.3%) were generated in the trade and repair of motor vehicles and motorcycles; 150.7 thousand (17%) in the construction and 111.5 thousand (12.6%) in the manufacturing industry. As to the 524.2 thousand salaried persons of enterprises that left the market, 162.5 thousand (31.0%) were in the trade; 142.2 thousand (27.1%) in the manufacturing industry and 60.3 thousand (11.5%) in the construction.

Having a balance of 106.1 thousand job posts between 2012 and 2013, the activity of trade registered the highest absolute gain of salaried employed persons. This activity also stood out in terms of the number of enterprises that entered (364.7 thousand), left (328.8 thousand) and survived (1.8 million), representing, respectively, 41.8%, 47.3% and 48.1% of the total number of enterprises in each movement.

Construction was the activity that recorded the highest entry rate in 2013: 26.4%. Having the equivalent of 19.1% of the enterprises of this sector leaving the market, electricity and gas was the activity that posted the highest exit rate. Having registered a survival rate of 85.5%, manufacturing industry was the activity with the highest proportion of enterprises remaining active.

Highest entry and exit rates in North, Northeast and Central-West

In 2013, 4.6 million active enterprises had 5.2 million active local units, from which 50.9% were located in the Southeast Region, 21.9% in the South Region, 15.5% in the Northeast Region, 8.0% in the Central-West Region and 3.7% in the North Region. Of the total local units, 4.2 million survived in relation to 2012 (81.7%), 951.6 thousand (18.3%) were new entries and the exits added up to 756.2 thousand (14.6%) units.

The South and Southeast Regions registered the highest survival rates, 83.4% and 82.4%, respectively, above the national average (81.7%). Conversely, the highest entry and exit rates were recorded in the North (24.3% and 18.1%), Northeast (20.7% and 15.9%) and Central-West (20.6% and 15.2%) Regions, as well as the lowest survival rates: 75.7%, 79.3% and 79.4%, respectively.

The Southeast and Northeast Regions registered the highest figures of employed persons due to the creation of new enterprises, representing 49.5% and 19.8%, respectively, of the total salaried population employed in new entrants in 2013.

28.1% of salaried persons in construction are in high-growth enterprises

33,374 high-growth enterprises were recorded in 2013, the equivalent of 0.7% of the total number of active enterprises and of 7.0% of the active enterprises with 10 or more employed persons. The highest proportion of high-growth enterprises, per activity, was reported in administrative activities and complementary services (11.1%), construction (10.5%) and water, sewage, and activities of waste management and decontamination (10.4%). The sectors of housing and food (4.0%); art, culture, sports and recreation; and repair of motor vehicles and motorcycles (both with 5.5%) posted the lowest proportions.

High-growth enterprises employed 5.0 million salaried persons, which represented 14.2% of salaries and other compensation and 17.2% of the salaried persons in enterprises with 10 or more persons. The activity of construction registered the highest proportion of salaried persons in high-growth enterprises (28.1%), followed by administrative activities and complementary services (26.2%) and information and communication (21.4%). On the other hand, electricity and gas (2.2%), financial and insurance activities, and related services (7.2%) and education (10.7%) recorded the lowest proportions.