In 2022, Brazil had 7.9 million active companies, as recorded by the Central Business Registry (Cempre). Of this total, 32.9% (2.6 million) were employers and had 40.5 million employed people on their staff. Of the total number of employees, 90.1% (36.5 million) were salaried, receiving a monthly average of R$3,100.
The numbers are part of the survey Demography of Companies and Entrepreneurship Statistics (2022), released this Thursday (5), by the Brazilian Institute of Geography and Statistics (IBGE).
Public administration bodies, non-profit entities and international organizations are not included in the concept of research companies, as are individual micro-entrepreneurs (MEI).
Birth
The data shows that, among the employing companies, 405.6 thousand were born in 2022 – which means a birth rate of 15.3%. In terms of hiring, these newly created companies were responsible for approximately 1.7 million workers, which represents 4.6% of the total number of employees.
The term birth used by IBGE is the demographic event characterized by the beginning of activity of a company or local unit. Also considered in this category are companies that spent 24 months inactive, without employees and then returned to activity.
“These are companies that are new or those that, throughout their existence, remain dormant for a period of time that simply stops working. If it spent more than 24 months without working, when it returns, for us, it is considered a company that was born”, explains the research manager, Thiego Gonçalves Ferreira in a press conference to present the data.
Compared to data from 2017, the birth rate increased from 10.9% to 15.3% in 2022. In parallel, the participation of salaried personnel rose from 3.3% to 4.6% in the same period.
In a breakdown by worker sex, the research found that women made up the smallest number of company employees (41.7%) in surviving companies, that is, those that were created in 2017.
“Female participation fell between 2018 and 2020 and started to grow again from 2021 onwards”, added Eliseu Oliveira, analyst from the IBGE Analysis Management at the data presentation conference.
When observing the level of education, the data shows that the majority did not have a higher education degree.
“The analysis by level of education of employees reveals that since 2019 there has been a drop from 9.5% to 8.8% in the participation of those with higher education. This share remained stable after this drop, reaching 8.9% share in 2022”, informed the analyst.
Deaths
The mortality rate of local employing units across the country reached 9.2%. The highest rates, even exceeding the national rate, were recorded in the Central-West (10%), North (9.6%) and Northeast (9.3%) regions.
Among the federation units, the biggest highlights were the Federal District (11.2%) and Goiás (10.0%), in the Central-West region; and Amapá (11.1%) and Amazonas (10.1%), in the North region.
In contrast, the lowest rates of company deaths were recorded in Paraíba (8.3%), Santa Catarina (8.6%) and Rio Grande do Sul (8.7%), and Mato Grosso do Sul (8. 7%).
“The concept is the opposite of birth, with the difference that in this edition we are being more strict with the company’s death certificate. If it is inactive for two years in a row, then yes, we declare the death of that company. It means that we can only have more accurate information about the death two years ago. Here we are talking about the birth of a company in 2022 and the death of a company in 2020”, he said
Survival
The continued operation of the company is treated as survival, “a demographic event characterized by the company or local unit that was born five years before the reference year and remained active in the following years”. In the case of employing companies, it refers to those that are active in the year of birth and in the following year(s), also as an employer.
“We look at the survival cycle of companies and want to talk about how long a company has survived. We take companies that were born in a given year and monitor the following years. From there, you can get a survival rate,” said Ferreira.
According to research released today, considering companies that were born in 2017, it can be seen that the survival rate after five years of birth was 37.9%. Of the employing companies that were created that year, 76.2% survived in 2018; 59.6% in 2019; 49.4% in 2020; 42.3% in 2021 and only 37.3% survived in 2022.
In general, the highest probability of survival was in the Southeast region, followed by the South, Northeast, North and, finally, the Central-West regions. Among the Federation Units, the survival rate in the fifth year varied from 27.9% (Amapá) to 40.5% (Sergipe).
Entrepreneurship
The concepts followed by IBGE indicate that high-growth companies are those that have an average increase in salaried employed persons of at least 10% per year, for a period of three years, and with 10 or more salaried employed persons in the initial year of observation.
In 2022 there were 70,032, which employed 8 million salaried people. In relation to companies with 10 or more employees, high-growth companies represented a quantity equivalent to 13.8% of companies, 26.7% of salaried personnel and 24.6% of salaries and other remuneration.
Of the high-growth companies, 6,623 were so-called gazelles, those that had been born within 5 years. “They absorbed 409.5 thousand salaried people and paid a salary of 2.1 minimum wages”, concluded the analyst.
