The number of active enterprises in the Central Register of Enterprises - CEMPRE had a continuous growth between 2000 and 2006, changing from 3.7 million to 5.1 million. ...

 

The number of active enterprises in the Central Register of Enterprises - CEMPRE had a continuous growth between 2000 and 2006, changing from 3.7 million to 5.1 million.  On the average 726,567 enterprises were created per year and 493,766 were extinguished, with an average annual balance of 232,800 enterprises.  In 2006, however, the low increase (46,379 enterprises) resulted from the creation of new enterprises below the average (710,868), combined with the highest number of exits in the period (664,489).  The highest entry rates of enterprises were observed in agriculture, livestock, silviculture, forest exploration and fishing and in activities related to services.  On the other hand, the lowest rates came from the industrial activities.  From each ten formal jobs created by new enterprises (with up to five years), between 2000 and 2006, on the average, four were in Trade, three in Services and three in Industry.  On the average, five were in micro (1), three in small, one in middle and one in big enterprises.  Enterprises created between 2001 and 2006 accounted for 46.5% of the formal jobs in enterprises in the year.  The highest average entry and exit rates of local units and of salaried personnel were in Amapá, Roraima, Acre and Tocantins.  On the other hand, the lowest entry rates of local units were in the four Federative Units of the Southeast Region.  These are some conclusions of the study Demography of Enterprises 2006, which focused 5.1 million enterprises of a total of 5.7 million enterprises and other active organizations in the Central Register of Enterprises – CEMPRE, in the period 2000 to 2006.

 

 

 

The study Demography of Enterprises 2006 focused on 5.1 million companies from a total 5.7 million enterprises and other active organizations in the Central Register of Enterprises – CEMPRE, in 2006. These companies employed, in that year, 30.2 million persons, being 23.2 million (77.2%) salaried persons. They paid R$ 324.5 billion in salaries and other compensation, which corresponds to an average monthly salary of R$ 1,072, or 3.2 minimum wages per month. The study showed that over 90.0% of them were small-sized companies, 40.6% were new ones (with up to 5 years of existence) and over half of them (53.4%)belonged to the Trade subsector, followed by Real estate activities, rents and services rendered to enterprises (12.7%) and by Manufacturing industries (10.3%). There was, on average, 6 persons employed by company, being 5 of them as salaried workers, receiving an average monthly salary of 3.2 minimum wages.

 

The analysis by size of company showed that most of them were small ones (92.2%). Big companies made up a small part of this group (only 0.2%). However, they employed 32.0% of all the employed workers, 41.4% of the salaried persons and paid 57.7% of the total salaries and other compensation in the year. 

 

The lowest salaries were paid by small companies, R$ 654 (1.9 of a minimum wage per month), whereas the highest salaries were paid by big companies R$ 1,494 (4.4 minimum wages per month), a difference of 128.4%. Most companies paid salaries 39.4% above the national average. In terms of the age of active companies in 2006, 40.6% were new ones (with up to 5 years of existence) and 39.2% had existed for 10 years or over.

 

Trade had almost one-third (31.5%) of the persons employed in the year. Manufacturing industry had one in each four employed persons (25.0%) and Real estate activities, rents and services rendered to enterprises, 13.8%. In spite of its smaller number of companies, Manufacturing industry was the most important economic activity in terms of participation of salaried persons (29.2%) and salaries paid (35.3%).

 

Average monthly salaries differ in terms of economic activity, ranging from R$ 549 (1.6 of a minimum wage) in Lodging and feeding, to R$ 3,242 (9.6 minimum wages) in Production and distribution of electricity, gas and water; this represents a difference of 490.5%.  Only six of the 15 activities paid salaries above the national average,; three of them are part of the industrial sector, Production and distribution of electricity, gas and water, Mining and quarrying industry and Manufacturing industry and three of them are related to the services sector, Financial mediation, Public administration and Transportation, storage and communications.

 

 

Between 2000 and 2006, 232,800 companies o average were created and closed per year

 

The number of active companies in CEMPRE increased continuously between 2000 and 2006, changing from 3.7 million to 5.1 million. Throughout the year were created, on average, 726,567 companies, and 493,766 were closed, resulting in annual balance of 232,800 companies.  However, this increase was not homogeneous throughout the period analyzed, and changed from 499,026 companies, in 2001, to 46,379, in 2006.  The increase of the number of companies in 2001 was a consequence of the biggest number of entries of companies in the period analyzed (829,302) and of the low number of exits (330,276). On the other hand, the low increase observed in 2006 resulted from the increase of entries below average (710,868) and from the bigger number of exits in the period (664,489).

 

The average rate of company entry in the market, between 2000 and 2006 was 16.9%, whereas the average rate of exit was 11.2%, that is, with annual increase of 5.7% in the total active companies in the period. The rate company entry in the market ranged from 14.0%, in 2006, to 22.2%, in 2001, whereas exit rate ranged from 13.0%, in 2006, to 8.8%, in 2001.

 

The highest entry rates were those of activities related to Agriculture, livestock, silviculture, forest exploration and fishing and in activities related to services such as Other collective, social and personal services and Real estate activities, rents and services rendered to enterprises. The lowest rates were those of industrial activities, in which there are more barriers to entry, as well as bigger need of productive investments or characterized by technological innovation, such as Mining and quarrying industry and Manufacturing industry. In services, Health activities and social services, after 2001, are also among the lowest entry rates.

 

The Demography of Enterprises showed that survival rate of Brazilian companies was 81.0%, for years 2004/2006. The highest survival rates were observed in Education and Health and social services, 87.7% and 86.6%, respectively, whereas the lowest rates were those of Lodging and feeding and in Real estate activities, rents and services rendered to enterprises, with 78.5% in both activities, and in Production and distribution of electricity, gas and water, with 76.9%. 

 

 

International analysis shows that services sector is responsible for the highest entry and exit rates

 

Among eleven countries analyzed, the highest entry rate of companies in the market occurred in Great Britain, 12.9%, followed by Australia, 11.2% e Norway, 10.6%. The United States were in the fourth position with 10.1%. Portugal, Italy and Finland had the lowest rates, 5.9%, 7.4% and 7.7%, respectively.

 

In nine of the eleven countries, the highest rates were those of activities related to services, such as Lodging and feeding in Great Britain, Sweden and in the United States, Financial mediation in Finland and in the Netherlands, Education in Norway and Italy, Transportation, storage and communications in Portugal and Real estate activities, rents and services rendered to enterprises in Denmark. Australia and Spain, on the other hand, presented the biggest rates in industrial activities such as Production and distribution of electricity, gas and water and Construction, respectively.  

 

In terms of exist rates from the market, considering the seven countries analyzed, Great Britain had the highest rate (10.8%), but, in this case, it is followed by the United States, with 10.4%. The lowest rates of company exit were observed in Australia, 4.1% and Portugal, 4.5%.

 

In five of the seven countries, the highest exit rates also occurred in activities related to services, such as Lodging and feeding, in Great Britain and Sweden; Transportation, storage and communications in the United States and Financial mediation in Italy and in Portugal. In Australia and Finland, the highest rates were those of Trade. On the other hand, the lowest exit rates in four of the seven countries, Finland, Italy, Sweden and the United States occurred in Production and distribution of electricity, gas and water, and in two countries, Portugal and Great Britain, in health and social services, and, in Australia, in Financial mediation. Among the five selected countries, Sweden is the one which presents the highest survival rate, 88.6%, whereas Spain has the lowest one, 71.1%.

 

One in each five companies was new between 2000 and 2006

 

Companies with salaried persons represented, on average, about one third (32.4%) of the active companies per year between 2000 and 2006. Whereas in the group of active companies the average entry rate was 16.9%, in companies with employees it was 20.7%. On the other hand, the exit rate of these companies was also high, 15.3%, whereas the group of companies was 11.2%, which can mean companies with salaried persons are more concerned about ending their activities officially than companies without employees. In 2006, the entry rate of companies with salaried persons (18.4%) was the lowest in the period analyzed, whereas the exit rate (14.7%) was below average (15.3%).

 

According to Demography of Enterprises, between 2000 and 2006 were created, on average, 290,252 companies with salaried employed persons per year and having 1,159,254 salaried persons. Other 214,883 companies were closed, resulting in 843,714 salaried persons less.  The net increase of the number of companies and of salaried employed persons has been positive throughout the period, with an average of 75,369 companies and of 315,540 salaried persons per year.

 

The average figures for salaried employed persons, both in companies created and in the closed ones were very similar, 4.0 and 3.9 persons, respectively, representing about 30.0% of the salaried employed persons in all the Brazilian companies (13.2 salaried persons). The low averages of salaried employed persons in companies created and closed are associated to the great instability of smaller companies, which are constantly entering and leaving the market. The average monthly wages paid by created companies, 1.2 minimum wages, have been, on average, almost half of the salaries paid by closed companies, 2.3 minimum wages.

 

Companies created meant a significant contribution to the stocks of enterprises, representing about one in each five existing companies every year. However, its impact on salaried person has been lower, accounting for 6% of the employment. It is worth mentioning that the participation of companies created and of salaried employed persons decreased between 2000 and 2006, changing from 21.5% to 17.7% of the companies and from 6.8% to 5.0% of the salaried persons.

 

The highest entry and exit rates of companies have been observed in the Trade sector, followed by Services, whereas Industry had the lowest opening (creation) and closing rates in almost all the years analyzed.

 

In Trade, the rates of opening (creation) and closing of companies were, on average, 22.0% and 15.9%, respectively, resulting in increase of almost 160 thousand companies and the end of almost 115 thousand per year. The number of commercial companies per year increased 3.7 times more than industrial companies and almost twice as much as service companies.

 

Trade sector offered most of the new jobs in the formal market

 

Among each tem formal jobs created by new companies between 2000 and 2006, on average, four were created in Trade, three in Services and three in Industry. This distribution remained stable in this period, however, it is possible to observe that, between 2000 and 2004, Industry gradually reduced its capacity to generate jobs, from 30.1% to 24.7%, whereas Trade changed from 35.8% to 39.1%. However, after 2005 Industry has recovered and its participation in employment creation has increased again.

 

Trade accounted for almost 40 % of the jobs created every year, followed by Manufacturing industry, with about 20%. Therefore, Manufacturing industry generated half of the volume of employment of Trade. Real estate activities, rents and services rendered to enterprises came in the third and fourth positions, with 11.9% and 7.4%, on average, respectively, whereas Construction was only in the fifth position, with 6.8%.

 

The distribution of salaried persons by lost by closed companied is different from the distribution of salaried persons in new companies. Whereas in the new companies created there is predominance of salaried persons hired by the Trade sector, among closed companies there is not a specific pattern. In four of the seven years analyzed, 2000, 2003, 2004 and 2006, there was predominance of Services, whereas in 2002 and 2005, Trade prevailed and in 2001, Industry did. In 2006, among each tem salaried persons in closed companies, four were in Services, three in Trade and three in Industry.

 

The study pointed to the predominance of Trade with about one third of the salaried persons in closed companies, followed by Manufacturing industry, with about 20% and Real estate, rents and services rendered to enterprises, with 15% in 2006. Demography of Enterprises also showed reduction of the participation of Manufacturing industry (from 24% in 200 to 19.4% in 2006) and Construction (from 8.0% to 5.8%), whereas it observed, in this same period, increase of participation of Real estate activities, rents and services rendered to enterprises (from 12.1% to 15.6%) among salaried persons in closed companies.

 

 

New companies offered 46.5% of formal employment in companies in 2006

 

Among the total 1.7 million of active companies with salaried persons in 2006, 404.4 thousand (23.6%) had been active since 2000 and were considered surviving companies in 2000 and 2006. The other 1.3 million companies were created between 2001 and 2006 and were active in 2006. 

 

In 2006, 23.3 million persons were salaried workers in Brazilian companies. Among these, 12.5 million (53.5 %) were employed in what is called in this study surviving companies between 2000 and 2006, whereas 10.8 million (46.5%) were employed in companies created between 2001 and 2006.

 

Mining and quarrying industry (33.5%) and Production and distribution of electricity, gas na water (30.9%) had the biggest participation of surviving companies between 200 and 2006.

 

Among the 404.4 thousand surviving companies existing between 2000 e 2006, half belonged to Trade (49.9%), 17.6% to Manufacturing industry and 7.77% to Real estate activities, rents and services rendered to enterprises. Among the 1.3 million companies created between 2001 and 2006, the most important activities were the same as in surviving companies; trade companies, however, represented over half of these companies, 53.5%, whereas Manufacturing industry were only 13.6% and Real estate, rents and services rendered to enterprises, 8.4%. In absolute figures, the increase of the number of new commercial companies (701.3 thousand) was 3.9 times higher than that of Manufacturing industry (178 thousand). 

 

The analysis of the distribution of salaried persons in surviving companies and companies created throughout the period reveals the importance of Manufacturing industry. Among the total 12.4 million salaried persons in surviving companies, 4.1 million, that is, 32.8% were in Manufacturing industry, representing 60.1% of the total salaried persons in this activity and 17.5% of the total salaried persons in 2006.

 

Among created companies, Trade was the highlight, accounting for 30.5% (3.3 million) of the total 1.8 million of salaried persons, which represents 54.1% of the salaried persons employed in this activity and 14.2% of the total salaried persons in the year. Mining and quarrying industry were also a highlight with 25.1% of the total salaried persons in these companies, followed by Real estate activities, rents and services rendered to enterprises, with 13.9%. These three activities, together, accounted for 69.5% of the total salaried persons in companies created between 2001 and 2006.

 

Most of the companies created or closed are small ones

 

Over 90% of the companies created every year were small ones. It can be seen that their participation increased by 1.7 percentage pints between 2000 and 2006, opposite to the decrease of small companies (10 to 49 employed persons). Medium-sized companies (with 50 to 249 persons employed) and big-sized ones (with 250 and more persons employed) remained with constant participation throughout the period analyzed, with 0.6% and 0.1%.

 

The predominance of  micro enterprises in the group of new enterprises does not occur at the same proportion in terms of salaried persons; however, these companies accounted for almost half of (47.0%, on average) of the formal salaries generated by each year analyzed. Between 2000 and 2005, they increased their participation, changing from 44.8% to 49.3%, opposite to the reduction of companies of other sizes, especially big ones, for example, from  11.8 % to 9.0%.  In 2006, the participation of micro and small companies decreased in relation to what was observed in 2005 , whereas the participation of medium companies increased. Between 2000 and 2006, among each tem formal jobs created in new companies per year, five, on average, were in micro enterprises, three in small; one in medium and on in big enterprises.

 

 

Among the companies closed, over 90% were micro enterprises and accounted for the end, on average, of 44.8% of salaried working positions per year. Between 2000 and 2004, the participation of these companies in the total number of salaried persons in closed companies increased from 39.0% to 47.8%, opposite to the reduction of participation of 6.5 percentage points of big companies and 2.6 of medium ones. Small companies kept an almost constant level of participation throughout the period, about 25.0%.  Between 2000 e 2006, one among each 10 formal jobs lost a year 4.5 were in micro-enterprises, 2.5 in small ones, 2.5 in medium ones and 2 in big ones.

 

 

 

Rio de Janeiro, São Paulo, Rio Grande do Sul and Alagoas had the lowest number of entry rates of salaried workers

 

The study showed that, between 2000 and 2006, the average rate of local units in the market was 20.3%, whereas the average exit rate was 15.1%. The North Region had the highest entry and exit rates (24.5% and 17.0%), followed by the Central West (23.7% and 16.7%).  On the other hand, the South (20.7% and 15.1%) and Southeast (18.7% and 14.6%) had the lowest rates. It is important to highlight that the Southeast was the only state with rates below the national average.

 

The average rates of entry and exit of salaried persons in local units with salaried persons were 8.0% and 4.8%, respectively. Similarly to what happens in local units, the North and Central West Regions also had the highest entry and exit rates of salaried persons, and the South and Southeast Regions, the lowest ones.

 

In the North Region, the difference between the entry and exit rates of local units reached 7.8 and 4.8 percentage points in salaried persons, and these figures are close to those in the Central West Region, 7.1 percentage points and 4.3 percentage points, respectively. On the other hand, in the Southeast the difference was lower, 4.2 and 2.8 percentage points, respectively.

 

 

The differences in the rates of entry and exit of local units and of salaried employed persons, between 2000 and 2006 affected the distribution of these variables by Major Region. The study shows that there is concentration of local units and salaried persons in the Southeast Region, whose participation is 50% higher, in both variables in 200 and in 2006. However, the entry and exit rates observed in the North, Central West and Northeast Region above the ones presented by the Southeast Region led to the increase of participation of these regions both in local units and in salaried persons, at the same time it led to decrease of the relative participation of the Southeast Region. In the South Region, there was increase of participation in local units from 21.9% to 22.6%, but its participation in salaried persons remained stable between the two periods analyzed, at 19.0%.

 

The highest average entry and exit rates of local units and of salaried persons were those of Federative Units of the North Region, such as Amapá, Roraima, Acre and Tocantins. On the other hand, the lowest entry and exit rates were those of the four Federative Units in the Southeast Region - Minas Gerais, Espírito Santo, São Paulo and Rio de Janeiro. The lowest entry rates of salaried persons were those of Rio de Janeiro and São Paulo, Rio Grande do Sul and Alagoas.  

 

The relationship between local units created and the resident population in the Federative Unit allows the identification of density of creation of local units by inhabitant. In 2006 were created 353.0 thousand new local units of companies with salaried persons, of which 48.5% were in the Southeast Region. As this region concentrated 81.0 million inhabitants, or 42.6% of the total population, the density of the Southeast Region was 2.1 by one thousand inhabitants, slightly above the national average of 1.9 local units created by one thousand inhabitants.

 

Considering a more specific population, aged 10 years and over, density increases to 2.3 local units by one thousand inhabitants. The highest restricted densities were observed in the South and Central West Regions, with 3.5 and 2.6 local units, respectively, whereas the lowest one was that of the North Region, 1.2 local unit by one thousand inhabitants. By Federative Unit, the highest specific density was observed in Santa Catarina, 4.2 local units by one thousand inhabitants, whereas the lowest one was that of Amazonas and Maranhão, 0.9 local unit. So, despite the high entry rates of local units observed in the North Region, the specific rate of local units in this Region (1.2 local unit) was significantly lower than in other regions, as that the Northeast Region (1.4 local unit) below the national average (2.3 local units).