Demography of Enterprises and Entrepreneurship 2019: balance between open and closed enterprises was positive after 5 years
October 22, 2021 10h00 AM | Last Updated: October 27, 2021 05h44 PM
After showing five negative balances between 2014 and 2018, the difference between the number of inbound and closed enterprises was positive in 2019, reaching 290.9 thousand. Part of that positive balance can be related to the fact that, in 2019, Enterprises Demography, which is based on the data of the Central Register of Enterprises (CEMPRE), began to also include information from eSocial, which will gradually replace data from RAIS.
The entry rate of enterprises was 20.2% (or 947.3 thousand) in 2019, being 15.5% of new enterprises (or 726.5 thousand) and 4.7% of re-entry ones (or 220.8 thousand). The exit rate stayed at 14.0% (or 656.4 thousand enterprises).
The highest balance of enterprises was registered in Professional scientific and technical activities (61,388 enterprises) and Human health and social services (44,294 enterprises).
The highest exit rates occurred in Amapá (22.0%), Maranhão (20.3%) and Roraima (18.2%) and the lowest ones, in Santa Catarina (10.7%), Rio Grande do Sul (12.6%) and Espírito Santo (12.8%).
The 4.7 million active enterprises in 2019 had 5.2 million local units, from which 50.5% were located in the Southeast.
In 2019, the survival rate was 79.8% (or 3.7 million enterprises), below that of 2018 (84.1%).
Between 2018 and 2019, the number of active enterprises increased 6.6%, whereas salaried employed personnel grew 2.4% (774.8 thousand).
Concerning entrepreneurship, the number of high-growth enterprises reached 25,011 in 2019, an increase of 10.0% over 2018. High-growth enterprises represented 1.1% of the enterprises with salaried employed personnel and 5.4% of the enterprises with 10 or more salaried persons in Brazil. They employed 3.3 million salaried persons and paid R$94.6 billion in salaries and other compensation, with a monthly average salary of 2.5 minimum wages.
These are some of the highlights of the Enterprises Demography and Statistics of Entrepreneurship 2019, which analyzes the enterprise dynamics through indicators of entry, exit, re-entry and survival of enterprises, as well as high-growth enterprises and gazelles, among others.
In 2019, the Central Register of Enterprises (CEMPRE) added up to 4.7 million active enterprises that employed 39.7 million people, being 33.1 million (83.3%) as salaried persons and 6.6 million (16.7%) as partners or owners. The average age of the enterprises was 11.7 years.
The salaries and other compensation added up to R$1.1 trillion, with a monthly average salary of 2.5 minimum wages, the equivalent to R$2,530.76.
Of the total number of active enterprises in 2019, 79.8% (3.7 million) were surviving enterprises and 20.2% (or 947.3 thousand) were inbound enterprises (that entered in the list of active enterprises in 2019).
Of the 947.3 thousand inbound enterprises in 2019, 15.5% (or 726.5 thousand) were births and 4.7% (or 220.8 thousand), enterprises that re-entered in the list of active enterprises. On the other hand, nearly 14.0% (or 656.4 thousand) of the enterprises considered active left the market in 2019.
In 2019, the Demography of Enterprises and Entrepreneurship, which is based on the data of the Central Register of Enterprises (CEMPRE), began to incorporate the information from the System of Digital Bookkeeping of Fiscal, Social Security and Labor Obligations (eSocial), which is gradually replacing the Annual List of Social Information (RAIS). As a result, methodological adjustments were carried out to select active units from this edition onwards.
2019 has the first positive balance since 2013: more 291 thousand enterprises
In 2019, the balance of enterprises, i.e., the difference between entries and exits, reached 290.9 thousand, the first positive balance after five years. The increase in the number of inbound enterprises (from 697.1 thousand in 2018 to 947.3 thousand in 2019) contributed to that reversal, as well as the reduction of exits (from 762.9 thousand in 2018 to 656.4 thousand in 2019).
As a result, the entry rate rose from 15.9% to 20.2% within a year, whereas the exit rate dropped from 17.4% to 14.0% in the period. The table below details such movements, as well as it shows the five negative balances occurred between 2014 and 2018.
It should be highlighted that part of the positive balance of 2019 can be related to the fact that, as of this year, the Demography of Enterprises began to incorporate the information from eSocial, replacing the data from RAIS.
Enterprises and salaried employed personnel and respective rates, by type of demographic event - Brazil- 2008-2019 |
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Year | Active enterprises | Exits | Balances (Entries - Exits) | |||||
Total | Sobreviventes | Entradas | ||||||
Total | Rates (%) | Total | Rates (%) | Total | Rates (%) | |||
Enterprises | ||||||||
2008 | 4 077 662 | 3 188 176 | 78.2 | 889 486 | 21.8 | 719 915 | 17.7 | 169 571 |
2009 | 4 268 930 | 3 322 254 | 77.8 | 946 676 | 22.2 | 755 154 | 17.7 | 191 522 |
2010 | 4 530 583 | 3 531 460 | 77.9 | 999 123 | 22.1 | 736 428 | 16.3 | 262 695 |
2011 | 4 538 347 | 3 666 543 | 80.8 | 871 804 | 19.2 | 864 035 | 19.0 | 7 769 |
2012 | 4 598 919 | 3 738 927 | 81.3 | 859 992 | 18.7 | 799 419 | 17.4 | 60 573 |
2013 | 4 775 098 | 3 903 435 | 81.7 | 871 663 | 18.3 | 695 748 | 14.6 | 175 915 |
2014 | 4 557 411 | 3 831 140 | 84.1 | 726 271 | 15.9 | 943 958 | 20.7 | (-) 217 687 |
2015 | 4 552 431 | 3 843 787 | 84.4 | 708 644 | 15.6 | 713 628 | 15.7 | (-) 4 984 |
2016 | 4 481 596 | 3 833 122 | 85.5 | 648 474 | 14.5 | 719 551 | 16.1 | (-) 71 077 |
2017 | 4 458 678 | 3 782 234 | 84.8 | 676 444 | 15.2 | 699 376 | 15.7 | (-) 22 932 |
2018 | 4 392 871 | 3 695 792 | 84.1 | 697 079 | 15.9 | 762 940 | 17.4 | (-) 65 861 |
2019 | 4 683 840 | 3 736 529 | 79.8 | 947 311 | 20.2 | 656 372 | 14.0 | 290 939 |
Salaried employed personnel | ||||||||
008 | 26 978 086 | 26 160 232 | 97.0 | 817 854 | 3.0 | 414 908 | 1.5 | 402 946 |
2009 | 28 238 708 | 27 373 575 | 96.9 | 865 133 | 3.1 | 452 208 | 1.6 | 412 925 |
2010 | 30 821 123 | 29 797 370 | 96.7 | 1 023 753 | 3.3 | 363 848 | 1.2 | 659 905 |
2011 | 32 706 200 | 31 726 069 | 97.0 | 980 131 | 3.0 | 410 407 | 1.3 | 569 724 |
2012 | 33 915 323 | 32 964 847 | 97.2 | 950 476 | 2.8 | 453 082 | 1.3 | 497 394 |
2013 | 35 050 524 | 34 162 830 | 97.5 | 887 694 | 2.5 | 524 159 | 1.5 | 363 535 |
2014 | 35 220 894 | 34 373 780 | 97.6 | 847 114 | 2.4 | 525 652 | 1.5 | 321 462 |
2015 | 33 623 393 | 32 845 567 | 97.7 | 777 826 | 2.3 | 492 182 | 1.5 | 285 644 |
2016 | 32 011 930 | 31 272 598 | 97.7 | 739 332 | 2.3 | 507 051 | 1.6 | 232 281 |
2017 | 31 877 046 | 31 047 640 | 97.4 | 829 406 | 2.6 | 469 406 | 1.5 | 360 000 |
2018 | 32 296 827 | 31 433 572 | 97.3 | 863 255 | 2.7 | 512 113 | 1.6 | 351 142 |
2019 | 33 071 591 | 32 037 129 | 96.9 | 1 034 462 | 3.1 | 438 917 | 1.3 | 595 545 |
Source: IBGE, Diretoria de Pesquisas, Coordenação de Cadastro e Classificações, Cadastro Central de Empresas 2005-2019. | ||||||||
Note: Due to likely changes in the scope of the enterprises from one year to the other, the calculation of the number of active enterprises (or salaried employed personnel) in year t is not necessarily equivalent to the number of active enterprises (or salaried employed personnel) in year t-1 plus the entries in year t less the exits in year t. Look at the Technical notes for more detailed information. |
Survival rate is higher among larger enterprises
The survival rate changed accordingly to the size of the enterprises. Between 2014 and 2019, the enterprises that were born without salaried employed personnel registered a survival rate of 32.1%; the enterprises between one and nine salaried persons recorded a rate of 49.1% and those with ten or more salaried persons reached 64.5%.
The study also analyzed the survival of local units in the 5-year period. Of the 755 thousand local units of enterprises born in 2009, 41.6% survived (were active) in 2014. Among the Federation Units, Amapá posted the lowest survival rate (28.9% of local units) and Santa Catarina, the highest one (49.3%).
New enterprises have lower percentage of persons with higher education
In the active enterprises in 2019, men were the majority of the employed and salaried population (60.6%) against 39.4% of women. The share of women was similar in the surviving enterprises (39.3%), as well as in those that entered (41.3%) and left (42.7%).
In the events of entry and exit of enterprises, the share of employees with higher education was 8.4% and 7.5%, respectively, whereas the share in surviving enterprises was 14.7%, a difference of up to 7.2 percentage points.
Of the total number of employees in high-growth enterprises, the number of professionals with higher education changed from 9.6% to 15.0% between 2009 and 2019, which represented an advance of 5.4 percentage points. That change moved from 10.2% to 15.8% in the enterprises with ten or more salaried employed persons, i.e., more 5.6 percentage points.
Professional, scientific and technical activities registered the highest balance of enterprises
Considering the economic activities, the biggest highlight was Professional, scientific and technical activities, a sector that includes independent professionals and that recorded one of the highest entry rates (27.2%) and the highest balance of enterprises (61,388 enterprises). Human health and social services significantly contributed to the balance of 44,294 enterprises, mainly leveraged by the inbound business activities of outpatient care, carried out by physicians and odontologists.
North registered the highest entry rate of local units and Northeast, the highest exit rate
The 4.7 million active enterprises had 5.2 million local units, from which 50.5% were located in the Southeast. It was followed by the South (22.5%), Northeast (14.9%), Central-West (8.4%) and North (3.7%) regions.
In four regions, the entry rate surpassed the national average: North (23.3%), Northeast (20.9%), Southeast (20.8%) and Central-West (22.3%). The South (18.3%) was the exception. Concerning the exit rates, the Northeast (17.4%), North (16.9%) and Central-West (15.0%) surpassed the national average (14.0%).
In the Federation Units, the highest entry rates occurred in Amazonas (26.9%), Acre (23.9%), Mato Grosso and the Federal District, both with 23.8%.. Conversely, Rio Grande do Sul (17.0%), Santa Catarina (18.9%) and Minas Gerais (19.1%) recorded the lowest rates.
The highest exit rates were in Amapá (22.0%), Maranhão (20.3%) and Roraima (18.2%). The lowest exit rates were in Santa Catarina (10.7%), Rio Grande do Sul (12.6%), Espírito Santo (12.8%) and Paraná (13.2%)
Local units and survival rate of local units born in 2009, by year of observation, according to the Major Regions and Federation Units - 2009-2019 |
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Major Regions and Federation Units | Local units born in 2009 | Survival rate, by year of observation (%) | |||||||||
1st year 2010 |
2nd year 2011 | 3rd year 2012 |
4th year 2013 | 5th year 2014 | 6th year 2015 |
7th year 2016 |
8th year 2017 |
9th year 2018 |
10th year 2019 |
||
Brazil | 755 034 | 77.5 | 65.3 | 56.0 | 48.9 | 41.6 | 36.8 | 32.6 | 29.0 | 25.6 | 22.9 |
North | 32 925 | 73.1 | 60.0 | 50.6 | 43.2 | 35.6 | 31.3 | 27.5 | 24.1 | 21.3 | 19.0 |
Rondônia | 5 535 | 77.0 | 65.4 | 56.3 | 49.4 | 43.0 | 37.7 | 33.6 | 29.1 | 26.3 | 23.8 |
Acre | 1 487 | 68.9 | 57.4 | 48.2 | 41.0 | 33.0 | 29.1 | 25.1 | 22.2 | 19.8 | 17.6 |
Amazonas | 6 647 | 66.8 | 54.0 | 44.3 | 37.2 | 29.6 | 26.0 | 22.8 | 20.1 | 18.1 | 16.3 |
Roraima | 1 301 | 72.6 | 57.8 | 46.8 | 39.5 | 31.7 | 27.3 | 24.1 | 21.1 | 18.1 | 16.4 |
Pará | 11 911 | 74.2 | 60.8 | 51.8 | 44.4 | 36.2 | 31.9 | 28.1 | 24.7 | 21.5 | 19.0 |
Amapá | 1 665 | 69.2 | 54.5 | 43.0 | 35.5 | 28.9 | 24.6 | 20.6 | 18.0 | 15.6 | 13.2 |
Tocantins | 4 379 | 77.6 | 63.9 | 54.5 | 45.7 | 38.5 | 33.8 | 29.7 | 26.2 | 23.1 | 20.7 |
Northeast | 125 639 | 77.1 | 64.5 | 54.9 | 47.6 | 39.3 | 34.8 | 30.8 | 27.3 | 23.9 | 20.9 |
Maranhão | 11 550 | 73.8 | 60.3 | 51.6 | 44.2 | 35.4 | 31.0 | 27.2 | 24.0 | 21.2 | 18.3 |
Piauí | 6 068 | 80.9 | 70.4 | 61.1 | 52.5 | 44.7 | 40.5 | 36.9 | 33.9 | 30.9 | 27.7 |
Ceará | 22 653 | 76.8 | 63.7 | 53.7 | 46.9 | 37.4 | 33.0 | 29.1 | 25.4 | 22.0 | 19.2 |
Rio Grande do Norte | 8 740 | 77.9 | 66.3 | 57.2 | 49.5 | 40.8 | 36.4 | 31.9 | 28.3 | 24.9 | 22.1 |
Paraíba | 7 574 | 81.5 | 69.4 | 59.9 | 52.8 | 44.2 | 39.7 | 35.9 | 32.3 | 28.9 | 26.0 |
Pernambuco | 20 775 | 75.7 | 63.1 | 53.7 | 46.6 | 38.8 | 34.3 | 30.3 | 26.8 | 23.0 | 20.0 |
Alagoas | 6 192 | 78.5 | 66.2 | 56.1 | 48.6 | 40.9 | 35.8 | 31.5 | 28.0 | 24.3 | 21.0 |
Sergipe | 3 919 | 78.4 | 67.2 | 59.5 | 51.7 | 44.8 | 40.2 | 35.3 | 31.7 | 28.0 | 25.2 |
Bahia | 38 168 | 77.0 | 64.1 | 54.2 | 46.8 | 38.8 | 34.2 | 30.2 | 26.9 | 23.4 | 20.5 |
Southeast | 370 940 | 77.8 | 65.8 | 56.3 | 49.3 | 41.9 | 37.0 | 32.4 | 28.8 | 25.4 | 22.8 |
Minas Gerais | 80 875 | 77.8 | 65.1 | 55.1 | 48.3 | 40.9 | 36.3 | 32.3 | 29.0 | 25.7 | 23.0 |
Espírito Santo | 14 668 | 76.2 | 64.9 | 55.5 | 49.3 | 41.6 | 37.1 | 33.3 | 29.8 | 26.0 | 23.6 |
Rio de Janeiro | 49 077 | 77.1 | 65.8 | 56.9 | 50.3 | 43.4 | 38.7 | 34.4 | 30.5 | 26.8 | 23.8 |
São Paulo | 226 320 | 78.0 | 66.2 | 56.6 | 49.4 | 42.0 | 36.9 | 32.0 | 28.3 | 25.0 | 22.4 |
South | 159 843 | 78.0 | 66.0 | 57.3 | 50.6 | 44.0 | 39.4 | 35.5 | 31.9 | 28.6 | 26.0 |
Paraná | 61 834 | 79.3 | 67.3 | 59.1 | 52.3 | 45.6 | 40.9 | 36.7 | 32.8 | 29.3 | 26.4 |
Santa Catarina | 34 331 | 81.8 | 70.4 | 61.9 | 55.2 | 49.3 | 44.4 | 40.4 | 36.7 | 33.1 | 30.6 |
Rio Grande do Sul | 63 678 | 74.8 | 62.3 | 53.0 | 46.5 | 39.7 | 35.2 | 31.8 | 28.5 | 25.5 | 23.1 |
Central-West | 65 687 | 78.0 | 65.4 | 55.7 | 48.6 | 41.3 | 36.6 | 32.4 | 28.8 | 25.1 | 22.4 |
Mato Grosso do Sul | 8 978 | 78.8 | 66.9 | 58.7 | 52.1 | 44.6 | 40.4 | 36.3 | 32.9 | 29.1 | 26.2 |
Mato Grosso | 14 139 | 74.8 | 61.9 | 52.3 | 46.0 | 39.3 | 35.2 | 31.3 | 28.2 | 24.8 | 22.5 |
Goiás | 27 347 | 79.3 | 66.5 | 56.6 | 49.0 | 41.9 | 37.1 | 33.0 | 29.2 | 25.7 | 22.7 |
Distrito Federal | 15 223 | 77.9 | 65.6 | 55.6 | 48.0 | 40.3 | 34.6 | 30.1 | 26.3 | 22.1 | 19.3 |
Source: IBGE, Diretoria de Pesquisas, Coordenação de Cadastro e Classificações, Cadastro Central de Empresas 2006-2019. |
The survival of local units born in 2009 was also analyzed. Only 22.9% survived up to 2019 and only 41.6% up to 2014. Among the Federation Units, the survival rates in the fifth year of life varied from 28.9% in Amapá to 49.3% in Santa Catarina. The North showed the highest gap: 43.0% in Rondônia against 28.9% in Amapá. In the Southeast, Minas Gerais (40.9%) recorded the lowest rate and Rio de Janeiro (43.4%), the highest one.
Surviving enterprises created 9% of new local units and 30.8% of new jobs
The surviving enterprises participated with 9.0% (95.4 thousand) of the total number of inbound local units in 2019 (1.1 million), signaling a regional expansion. The surviving enterprises also accounted for nearly one third (30.8%) of the salaried personnel of the inbound local units.
The study also highlighted that the size and average salary of the local units opened by surviving enterprises were higher. While the monthly average salary of the 1.1 million inbound local units was R$1,709.87, the units that came from surviving enterprises paid a monthly average salary 15.5% higher (R$1,974.98).
High-growth enterprises increased between 2018 and 2019
Among the active enterprises with salaried employed personnel, only 1.1% were high-growth enterprises, though they were responsible for 9.9% of all the salaried personnel. The survey showed that the pace of expansion of the number of high-growth enterprises remained: in 2018, the growth was of 11.9% and, in 2019, the increase was of 10.0%, adding up to 25,011 enterprises. They employed 3.3 million salaried persons and paid R$94.6 billion in salaries and other compensation, with a monthly average salary of 2.5 minimum wages.
In 2008, high-growth enterprises represented 8.3% of the entities with 10 or more salaried persons, a proportion that continuously declined up to 2017, when it hit 4.5%. With the increase registered in 2019, that share rose to 5.4%.
In the high-growth enterprises in 2019, men were the majority of the employed salaried population (62.6%) against 37.4% of women. The figures were similar among the enterprises with ten or more salaried persons - 62.2% and 37.8%, respectively.
To remain growing organically was not that simple. Considering the high-growth enterprises in the 2008-2014 period, on average, only 5.7% repeated that condition after five years and only 3.5% did that ten years later.
11.2% of the high-growth enterprises were gazelles
In 2019, 2,805 enterprises were gazelles (high-growth enterprises with up to five years of age) that employed 214.3 thousand salaried persons. In 2019, both variables increased: 8.0% in the amount of gazelles and 7.8% in the amount of salaried persons.