In 2015, the exit rate of companies (ratio between the number of firms that ceased operations and the total companies, in the period) was 15.7%, that is, it fell by 5.0 percentage points against the 2014 figure, when it had recorded the highest result in the series (20.7%). The entry rate (ratio between the number of firms that started operations and the total) also fell from one year to the other (from 15.9% to 15.6%). The entry rate has fallen for the sixth year in a row, ans reached the lowest figure in the series. 

Similarly to what happened in 2014, the balance, that is, the difference between the number of entries and exists, was negative, and amounted to an overall decrease by 5 thousand companies. Although fewer companies left the market in 2015, the number of salaried employed persons fell by 4.5%, which is equivalent to 1.6 million jobs. That is the first decrease in employed persons since the beginning of the series, in 2008.

For that same year, the study analyzed the mobility of surviving companies by size. It shows an increase of participation in the group of 0 employed persons, from 38.5% to 40.2%, and decrease of participation in the other three ranges (1 to 10, 11 to 50 and more employed persons).  

In 2015, 37.8% of the companies born in 2010 were still in the market. In this period, the highest survival rates came from human health and social services (54.8%) and real estate activities (50.8%). The survival rate of trade companies is among the lowest in the period considered (36.1%).

Trade was another activity that recorded both the biggest increases and decreases in salaried employed persons due to firm entry and exit in 2015. It recorded, however, absolute increase in salaried employed persons, with a positive resulting figure, 101.1 thousand persons.

In addition to that, more than 30% of the new jobs were generated in this activity, which held 239.5 thousand of the 777.8 thousand salaried persons generated by the companies that started operations in 2015.

These are some of the results of Demography of Enterprises 2015, a study which, with information obtained from the Central Registry of Enterprises – CEMPRE – allows the analysis of the business dynamics by means of indicators of entry, exit, reentry and survival of companies in the market, salaried employed persons, statistics of high-growth companies and of gazelle companies (high-growth enterprises in operation for up to eight years in the year of reference), besides indicators relative to local branches of companies and activities.

See the full study report here. 

Entry rate falls for the second year in a row and records lowest result in the series

In 2015, 708.6 thousand companies joined the market, in a universe of 4.6 million active persons, which represents an entry rate of 15.6%. That is the sixth consecutive decrease in the entry rate, which recorded the lowest result in the series.

The exit rate, after increasing in 2014 and reaching the highest result in the series, fell again in 2015, having changed from 20.7% (944.0 thousand) to 15.7% (713.6 thousand). Even so, the balance was negative once again, with a decrease of 0.1% in the number of enterprises (by 5.0 thousand persons).

The survival rate was the highest in the series, and recorded 84.4%, a total 3.8 million companies which remained in operation from 2014 to 2015. 

By type of economic activity, 12 of the 18 sections recorded decrease in the entry rate, between 2014 and 2015. The biggest rates came from real estate activities (22.3%); electricity and gas (22.2%) and financial and insurance activities and related services (21.5%). The lowest rates were those of manufacturing industry (11.4%); trade, repair of motor vehicles and of motorcycles (13.8%) and mining and quarrying industry (14.4%), which recorded the biggest survival rates among the companies: 88.6%, 86.2%, 85.6%, respectively. 

Regarding the exit rate, all the activities recorded decrease. The main ones came from information and communication (21.1%); construction (19.7%) and other service activities (17.7%). The lowest rates were those of human health and social services (9.9%); education (12.8%) and manufacturing industry (13.3%).

Salaried employed persons in companies falls for the first time since 2008

In comparison with the 2014 figure, salaried employed persons fell by 4.5%, with minus 1.6 million persons, despite the reduced rate of exit of companies. That was the first decrease in salaried employed persons since the beginning of the series, in 2008. Entries led to 777.8 thousand salaried persons and the exit represented a decrease by 492.1 thousand. Surviving companies amounted to 32.8 million salaried persons.

So, 97.7% of the salaried employed persons were in surviving companies and 2.3% in entering ones. Companies that were leaving the market correspond to 1.5% of the salaried persons.

Participation of companies without salaried persons increases in 2015

The mobility of surviving companies in the 2014/2015 comparison was also analyzed. From one year to the other, there was increase of the participation in the group with 0 employed persons, from 38.5% to 40.2%, and decrease in participation in the other three ranges (1 to 10, 11 to 50 and 50 or more employed persons).

In 2015, the total 40.2% of the companies in the group with 0 employed persons was formed by 34.5% of companies that were already part of that range in 2014, with an additional 5.5% of companies that used to be in the group of 1 to 10 companies and 0.2% of the companies that moved to the group with 11 to 50 employed persons. 

The total 49.0% in the range of 1 to 10 resulted from the 43.4% of companies that were already part of that group in 2014 plus the 3.9% of companies that grew and left the range of 0 persons in 2015, together with 1.7% of companies that belonged in 2014 to the group with 11 to 50 persons and decreased in size in 2015.  

Trade accounted for more than 30% of the new jobs 

From the total 777.8 thousand jobs generated by companies that started operations in 2015, 239.5 thousand (30.8%) came from trade, repair of motor vehicles and motorcycles; 97.7 thousand (12.6%), from construction, and 93.9 thousand (12.1%), from lodging and feeding.

In relation to the total 492.2 thousand salaried persons from companies that left the market, 138.4 thousand (28.1%) were in trade, repair of motor vehicles and motorcycles; 105.2 thousand (21.4%), from manufacturing industry; and 66.6 thousand (13.5%), from construction.

Trade had both the biggest increases and the biggest decreases in terms of salaried employed persons due to movements of entry and exit of companies in 2015. The activity had, however, absolute increase in terms of salaried employed persons, with a positive result of 101.1 thousand persons. Trade represents 44.0% (2.0 million) of the total companies and was also a highlight in terms of the absolute number of entries (276.0 mil), exits (311.5 mil) and surviving companies (1.7 million). It accounted for 39.0%, 43.6% and 45.0% of the total companies for each movement, respectively. 

Less than 38% of the companies survive after five years of activity 

From the total 733.6 thousand companies born in 2010, 551.2 thousand (75.1%) survived in 2011; 461.5 thousand (62.9%), up to 2012; 395.4 thousand (53.9%), up to 2013; 326.8 thousand (44.6%), up to 2014; and 277.2 thousand (37.8%) survived up to 2015. So, after five years in the market since 2010, less than 38% of the companies survived up to 2015.

There was also a direct relationship with size: companies with more employed persons tend to remain longer in the market, whereas those of smaller sizes have lower survival rates. Five years after their entry to the market, survival was 31.3% in compoanies without salaried employed persons; 57.8% for those with 1 to 9 persons and, in those with 10 or more employed persons, 67.1%.

In the period, the sections of activities recording the highest survival rates were human health and social services (54.8%), and real estate activities (50.8%). The survival rate of Trade was among the lowest in the period (36.1%).

South and Southeast have highest survival rates 

The 4.6 million companies in operation in 2015 had 5.0 million active local units, among which 50.5% were located in the Southeast Region; 22.3%, in the South; 15.3%, in the Northeast; 8.2%, in the Central West; and 3.6%, in the North. From the total local units, 4.2 million were survivals in relation to year 2014 (84.4%), 776.3 thousand (15.6%) were entries, and exits amounted to 780.7 thousand (15.7%) units. 

The South and Southeast Regions recorded the highest survival rates, 85.9% and 84.9%, respectively, above the national average (84.4%). On the other hand, the highest rates of entry and exit were those of the North (20.1% and 17.7%), Northeast (17.7% and 15.9%) and Central West (17.5% and 16.3%), as well as the lowest survival rates (79.9%, 82.3% and 82.5%, respectively).

The Southeast and Northeast recorded the highet percentage of salaried employed persons due to the creation of new companies, making up, respectively, 48.1% and 21.2%, of the total related to entries to the market in 2015.

Among the Federation Units, the highlights were São Paulo (28.6%), Minas Gerais (9.0%) and Rio de Janeiro (8.8%). Roraima (0.%), Amapá (0.3%) and Acre (0.4%) recorded the lowest levels of participation in terms of salaried employed persons.