Business

Despite recovery, pandemic still haunts Brazil’s small businesses

Almost four-fifths of Brazil's MSMEs are reporting revenue losses, and many of them are unable to obtain the credit they need to remain afloat

small businesses brazil
Small clothing firm in countryside Pernambuco. Photo: Andre Felipe Vieira/Folhapress

Brazil’s smallest businesses have been the biggest losers after almost 16 months of the Covid-19 pandemic. While the country’s micro, small and medium-sized enterprises (MSMEs) are now beginning to show some signs of recovery, these firms still face huge challenges and bottlenecks, linked to vaccination rates, access to credit, and financial organization.

According to a survey from the Brazilian Small Business Support Service (Sebrae), 79 percent of Brazil’s MSMEs are still reporting revenue losses. Some 67 percent say their income is not enough to cover their overheads. 

Yet, there is positive news with regard to employment. The same Sebrae study...

Access all of The Brazilian Report
Start your 7-day free trial.
Free trial