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Enterprise Pulse Survey: in the first fifteen days of June, 39.4 of the closed enterprises had ended their activities due to the pandemic

July 16, 2020 09h00 AM | Last Updated: July 22, 2020 12h07 AM

Among the 1.3 million enterprises that closed (temporarily or permanently) in the first half of June, 522.7 thousand ended their activities due to the pandemic, being 518.4 thousand (99.2%) small-sized enterprises (with up to 49 employed persons), 4.1 thousand (0.8%) medium-sized (with 50 to 499 employed persons and 110 (0%) large-sized (with more than 500 employed persons). In terms of type, the enterprises that closed after the start of the pandemic were subdivided as follows: 258.5 thousand (49.5%) were from the Services sector; 192.0 thousand (36.7%) were Trade companies; and 33.7 thousand (7.4%) were from the Industry segment.

These are the first results of the Enterprise Pulse Survey: Impact of Covid-19 on Enterprises. The data is part of the IBGE's Experimental Statistics, the tables and presentation of which are available on the right of the page. For additional information on the IBGE actions to combat the pandemic visit our hotsite

In the first half of June, it is estimated that the country had 4.0 million enterprises, being 2.7 million (67.4%) of them total or partial interruption of activities; 610.3 thousand (15.0%) temporarily closed and 716.4 thousand (17.6%) permanently closed. Among the companies that ended their activities permanently, regardless of the reason, the small-sized ones (751.1 thousand or 99.8%) were the most severely affected, whereas 0.2% (1.2 thousand) were large-sized. Regarding the sectors, Services (46.7% or 334.3 thousand) had the biggest proportion of enterprises ending their activities permanently, followed by Trade (36.5% or 261.6 thousand), Construction (9.6% or 68.7 thousand) and Industry (7.2% or 51.7 thousand).

From the total active enterprises, 70.0% reported that the pandemic had a negative effect, 16.2% that the effect was small or inexistent and 13.6% that the impact was positive. The negative effects were observed by 70.1% of the small-sized enterprises, by 66.1% of the medium-sized ones and by 69.7% of the large-sized enterprises. Among the sectors, that negative perception was reported by 74.4% of the Services enterprises, 72.9% of the Industry ones and by 65.3% of the Trade Enterprises.

The decrease of sales or traded services due to the pandemic was observed in seven out of every ten active enterprises (70.7%) in the first half of June against March, when the social isolation measures against the coronavirus were implemented. Small or inexistent effects were reported by 17.6% and 10.6% reported increase in sales with the pandemic. A drop in sales was observed in 70.9% of the small sized companies, in 62.9% of the intermediate ones and in 58.7% of the large sized enterprises. Among the sectors, decrease in sales was recorded by 73.1% of the Construction enterprises, 71.9% of the Services ones, 70.8% of the Trade enterprises and 65.3% of the Industry ones.

In terms of production, 63.0% of the enterprises had difficulty producing goods or serving clients, 29.9% reported observing no significant changes and 6.9%, reported finding it easier. Other 60.8% had difficulty in the access to suppliers, 30.2% reported no significant changes and 5.7% reported finding it easier. Whereas 63.7% had difficulty making regular payments, 33.1% felt no significant changes and 2.3% found it easier.

An estimated 1.2 million (44.5%) of the active enterprises postponed the payment of taxes since the beginning of March, with more than half (51.9%) considering that they had received support from the government regarding this measure. Approximately 347.7 thousand (12.7%) were granted emergency aid to pay salaries during the pandemic. From that total, almost seven out of ten (67.7%) considered there was support from the government to adopt such a measure.

About 32.9% of the organizations changed their method of delivering products or services, including the adoption of online services, and 20.1% launched or started to trade new products and/or services since the beginning of the pandemic.

As for employed persons, more than six out of every ten active enterprises  (61.2%) kept the same number of employed persons as in  the beginning of March, but 34.6% indicated a reduction of the staff and 3.8% increased the number of employed persons. Among the 948.8 thousand enterprises that reduced the number of employed persons, 37.6% reduced their staff by almost 25%, 32.4% between 26% and a half (50%) and 29.7% reduced their staff by more than half (above 50%).

Among the other measures adopted by enterprises, nine out of every ten (91.1%) conducted information and prevention campaigns and adopted extra hygiene measures in their activities. It is also observed that 38.4% implemented a home office shift and 35.6% brought workers' vacations forward. One out of every ten enterprises (32.4%) adopted at least one measure regarding the impacts of Covid 19, with support from the government.