In 2016, the entry rate of enterprises – relation between the number of enterprises entering the market and the total number of enterprises – fell for the seventh time in a row and reached 14.5%, the lowest value in the time series started in 2008. After dropping between 2014 and 2015, the exit rate – relation between the number of enterprises leaving the market and the total number of enterprises – returned to grow in 2016, changing from 15.7% to 16.1%.

The total balance of enterprises remained negative for the third year in a row, registering a decrease of 1.6% in the number of enterprises (less 70.8 thousand). Moreover, the number of salaried persons fell 4.8%, which represented less 1.6 million persons. This was the second consecutive drop in the salaried personnel.

In 2016, 38.0% of the enterprises that were born in 2011 were still active in the market, below the survival rates of the enterprises born between 2008 and 2010. The activities of the enterprises that recorded the highest survival rates were Human health and social services (55.8%) and Real estate activities (49.4%). After five years of activity, the survival rate of Trade; repair of motor vehicles and motorcycles was the lowest one (36.1%).

Trade was also the activity that posted both the biggest gains and biggest losses of salaried employed persons among those enterprises that entered and left the market in 2016. Nevertheless, this activity unveiled an absolute gain of salaried employed persons, registering a positive balance of 81.1 thousand persons.

Furthermore, 30.7% of the new jobs were generated in this activity, which concentrated 227.3 thousand out of the 739.38 thousand salaried jobs generated by the enterprises that entered the market in 2016. It should also be highlighted that trade was the activity with the highest number of active enterprises (1.9 million).

Concerning entrepreneurship, 20,998 companies were high-growth enterprises in 2016, employing 2.7 million salaried persons. High-growth enterprises were those that increased the number of employed persons at least by 20% per year, on average, for three years in a row, and that had 10 or more salaried employed persons in the first year of observation.

The number of high-growth enterprises reduced 18.6% and the salaried employed persons, 23.6% over the previous year. Even representing only 0.9% of the enterprises with salaried persons, they employed the equivalent of 8.3% of the salaried persons in these enterprises.

The high-growth enterprises of the reference year of 2016 rose 176.2% in employed persons between 2013 and 2016, an increase of 1.7 million job posts. Of them, 1.3 million concentrated in five activities: Administrative activities and complementary services (438.6 thousand), Manufacturing industries (300.5 thousand), Trade; repair of motor vehicles and motorcycles (267.0 thousand), Construction (171.8 thousand) and Transportation, storage and mailing (133.3 thousand).

Regarding the distribution of these enterprises by economic activity, the first three sections were Trade; repair of motor vehicles and motorcycles (25.9%); Manufacturing industries (18.2%) and Administrative activities and complementary services (11.7%).

These are some highlights of Enterprises Demography and Entrepreneurship Statistics 2016. This study analyzes the corporate dynamics through entry, exit, reentry and survival indicators in the market, salaried employed persons, statistics of high-growth enterprises and gazelles – high-growth enterprises with up to five years of age in the reference year –, as well as through indicators related to local units of enterprises and activities.

See more on this study in the Press Room at the IBGE News Agency.

Market loses 70.8 thousand enterprises between 2015 and 2016

In 2016, 648.5 thousand enterprises kicked in in a universe of 4.5 million active enterprises, which represented an entry rate of 14.5%. This was the seventh consecutive drop in the entry rate, hitting the lowest value in the time series. The highest one was registered in 2009 (22.2%).

After hitting its highest value in the time series in 2014 (20.7%) and falling in 2015 (15.7%), the exit rate returned to grow in 2016, staying at 16.1%. The lowest exit rate was reported in 2013 (14.6%).

Therefore, the total balance of enterprises remained negative for the third year in a row, registering a decrease of 1.6% in the number of enterprises (less 70.8 thousand).

The survival rate, in turn, rose and reached 85.5%, the highest value in the time series, representing 3.8 million enterprises that remained active from 2015 to 2016. In 2009, the enterprises recorded the lowest survival rate in the time series (77.8%).

Concerning the economic activity, the entry rate dropped in 17 out of the 18 sections between 2015 and 2016. The activities with the highest entry rates were Financial activities, insurance and related services (20.2%); Real estate activities (19.5%); Professional, scientific and technical activities (19.4%); Construction (18.5%); and Information and communication (18.4%). The lowest rates were posted in Manufacturing industries (10.5%); Trade, repair of motor vehicles and motorcycles (12.6%); and Mining and quarrying industries (12.9%), which were the activities with the highest survival rates: 89.5%, 87.4% and 87.1%, respectively.

On the other hand, the exit rate rose in 12 sections. The highest rates were reported in Electricity and gas (26.3%); Construction (21.1%); Information and communication (19.6%); and Other services activities (19.3%).  The lowest rates were registered in Human health and social services (9.6%); Education (12.9%); and Manufacturing industry (13.8%).

Salaried personnel in enterprises falls for second year in a row

Compared with 2015, the total number of salaried persons fell 4.8%, which represented less 1.6 million persons. This was the second consecutive drop in the salaried personnel. Entries added 739.3 thousand salaried persons and exits took 507.1 thousand. The surviving enterprises employed 31.2 million salaried persons.

Therefore, 97.7% of the employed salaried personnel were in the surviving enterprises and 2.3%, in the inbound enterprises. Conversely, the enterprises that left the market took 1.6% of the salaried personnel away.

New enterprises generate 739.3 thousand salaried posts

Of the 739.3 thousand salaried posts generated by the enterprises that kicked in in 2016, 227.3 thousand (30.7%) came from Trade; repair of motor vehicles and motorcycles; 95.5 thousand (12.9%) from Housing and food; 88.8 thousand (15.6%) from Manufacturing industries and 76.8 thousand (10.4%) from Construction.

Concerning the total number of 507.1 thousand salaried persons from enterprises that left the market, 146.2 thousand (28.8%) were in Trade; repair of motor vehicles and motorcycles; 79.3 thousand (15.6%), in Manufacturing industries; and 71.5 thousand (14.1%), in Construction.

The activities that recorded the highest relative gains of salaried employed persons were Arts, culture, sports and recreation (3.0 p.p.); Housing and food (2.7 p.p.); and Information and communication (1.7 p.p.). In absolute terms, Trade was the activity with the highest gain of salaried personnel (81.1 thousand).

After five years of activity, 38.0% of enterprises survive

Of the total number of 660.9 thousand enterprises that were born in 2011, 492.8 thousand (75.2%) survived in 2012; 426.2 thousand (64.5%), up to 2013; 346.8 thousand (52.5%), up to 2014; 300.2 thousand (45.4%), up to 2015; and 251.1 thousand (38.0%) survived up to 2016. Therefore, five years after they kicked in, 38.0% of the enterprises created in 2011 survived until 2016.

It was also noticed that enterprises with more employed persons tended to remain more time in the market, whereas the survival rates in smaller enterprises were lower. After five years they kicked in, the survival was of 31.1% in the enterprises without salaried personnel, 55.7% in the range between 1 and 9 salaried persons, and 65.2% in the range of 10 or more salaried persons. 

In this period, the sections of activities that recorded the highest survival rates were Human health and social services (55.8%) and Real estate activities (49.4%). The survival rate of Trade was the lowest one (36.1%), after five years of activity.

South and Southeast show highest survival rates

The 4.5 million active enterprises in 2016 had 5.0 million of active local units, which employed 32 millions of salaried persons.

Half (50.1%) of the local units were in the Southeast; 22.5%, in the South; 15.4%, in the Northeast; 8.2%, in the Central-West; and 3.7%, in the North Region. Of the total local units, 4.2 million survived in relation to 2015 (85.5%), 711.9 thousand (14.5%) were new entries and the exits added up to 781.4 thousand (15.9%) units.

The South (87.2%) and Southeast (85.7%) Regions posted the highest survival rates, though the highest entry and exit rates were in the North (18.3% and 19.3%), Northeast (16.1% and 16.7%) and Central-West (15.9% and 16.4%), as well as the lowest survival rates (81.7%, 83.9% and 84.1%, respectively). 

The Southeast and Northeast Regions registered the highest values of salaried employed persons corresponding to the creation of new enterprises, representing 51.0% and 18.2% of the total entries in the market in 2016, respectively.

Number of high-growth enterprises falls 18.6% in 2016, lowest since 2008

In 2016, Brazil had 20,998 high-growth enterprises, which employed 2.7 million salaried persons, paid R$70.7 billion in wages and other compensation and a monthly average salary of 3.0 minimal wages. The number of high-growth enterprises reduced 18.6% in relation to the previous year, the number of salaried employed persons, 23.6% and salaries and other compensation paid by these enterprises, 21.8%, in nominal values.

The amount of high-growth enterprises has been dropping since 2013. The total number in 2016 (20,998) was the lowest one in the time series started in 2008, and it was 67.7% below the number of high-growth enterprises registered in 2012 (35,206), the highest one in the time series. 

In 2016, the distribution of these enterprises by economic activity pointed out that the first three sections were Trade; repair of motor vehicles and motorcycles (25.9%); Manufacturing industries (18.2%) and Administrative activities and complementary services (11.7%). The first two sections also stood out for high participation rates in 2014 and 2015. Having ranked in the third position in both years, the Construction section (9.8% of the enterprises) declined to the fourth position in 2016.  

High-growth enterprises concentrate 8.3% of salaried persons

The high-growth enterprises represented 0.9% of the enterprises with salaried employed personnel and 4.6% of the enterprises with 10 or more salaried persons. Despite the low representativeness, they employed the equivalent to 8.3% of the salaried persons in the active enterprises with salaried employed persons and paid 7.1% of the wages and other compensation.

Nevertheless, these shares were also dropping along the time series. In 2008, they represented 16.7% of the salaried personnel (4.5 million) and 16.0% of the wages and other compensation (R$69.4 billion).  As of 2013, both variables continuously reduced, both in absolute and relative terms.  Between 2013 and 2016, the salaried personnel changed from 5.0 million to 2.7 million persons and the relative share fell from 14.2% to 8.3%. Wages and other compensation changed from R$107.5 billion to R$70.7 billion and the relative share reduced from 12.6% to 7.1% in this period.

In three years, high-growth enterprises of 2016 generate 1.7 million salaried positions

The salaried personnel of the high-growth enterprises increased 176.2% in the reference year of 2016, changing from 966.7 thousand salaried persons in 2013 to 2.7 million in 2016, an increase of 1.7 million salaried employed persons.

Of them, 1.3 million concentrated in five activities: Administrative activities and complementary services (438.6 thousand), Manufacturing industries (300.5 thousand), Trade; repair of motor vehicles and motorcycles (267.0 thousand), Construction (171.8 thousand) and Transportation, storage and mailing (133.3 thousand).

In relative terms, the activities that reported the highest increase of salaried personnel were: Human health and social services (231.0%), Arts, culture, sports and recreation (227.0%), Mining and quarrying industries (220.8%), Administrative activities and complementary services (202.6%) and Professional scientific and technical activities (189.7%).

Number of gazelle enterprises falls 23.5% in 2016

In 2016, Brazil had 2,723 gazelle enterprises, high-growth enterprises with up to five years of age in the reference year. They absorbed 240.5 thousand salaried persons and paid R$6.8 billion in wages and other compensation. The gazelles represented 13.0% of the total number of high-growth enterprises.

These were the lowest values in the time series. Compared with 2015, all variables strongly reduced, like the drop of 23.5% in the number of enterprises, of 22.6% in the salaried employed persons and of 15.7% in the total wages and other compensation, in nominal terms.

The representativeness of the gazelles in relation to the enterprises with 10 or more salaried employed persons remained stable between 2008 and 2014, around 1.0%, retreating to 0.7% in 2015 and 0.6% in 2016. 

More than half of salaried personnel in high-growth enterprises are in Southeast

In 2016, 20.9 thousand high-growth enterprises had 45.7 thousand active local units, which employed 2.7 million salaried persons. Nearly half of the local units of high-growth enterprises were in the Southeast (49.1%), followed by the South (19.7%), Northeast (17.5%), Central-West (8.5%) and North (5.2%) Region.

Concerning the employed personnel in the local units of the high-growth enterprises, 50.5% were in the Southeast, 20.3% in the Northeast, 15.0% in the South, 9.0% in the Central-West and 5.2% in the North Region.