According to data from the Economy Ministry, 189,000 new businesses were opened in Brazil between March and April, some 30 percent less than the same period in 2019. Interestingly, however, the number of closures fell even more sharply, 41.1 percent fewer than April of last year.
The study pointed toward growth in new firms in economic sectors that no longer need operating licenses or permits, thanks to the Economic Freedom Law of 2019. Businesses leading the number of new openings so far this year include beauty salons and clothes stores.
With regard to the comparatively low number of closures, Gleisson Rubin, the deputy secretary of privatization, management and digital governance, reckons the trend is connected to social isolation measures, with people hesitant to leave their homes and complete the bureaucratic requirements of closing firms.
“You have a smaller movement of people, consequently fewer business owners are going to commercial registries to complete procedures to close companies. Also, people may be delaying the decision to terminate firms due to assistance measures from the government,” he said.Support this coverage →