Small businesses in Brazil suffered losses of around US$5 billion due to COVID-19

A study conducted by Sebrae and Ipea, based on data from IBGE, reveals that 716,000 small businesses closed between March and June 2020 due to the COVID-19 pandemic, resulting in losses totaling R$ 24.1 (around US$5) billion.

The trade and services sectors were particularly affected, and the real impact of the pandemic may be even more severe than reported.

Rafael Moreira, an advisor from Sebrae Nacional, stated that the current situation could be worse, as many companies experienced prolonged periods of reduced sales for over two years.

The losses not only represent a financial setback but also entail a loss of knowledge that small business owners could have acquired. The study also highlights the rise in unemployment caused by the pandemic.

In light of these findings, the study emphasizes the necessity of implementing public policies to mitigate the effects of COVID-19.

One proposed measure is a reduction in the Selic, the basic interest rate, by 13.75% from September 2022.

This would facilitate access to financing for micro and small businesses.

Rafael Moreira stressed the importance of making credit more accessible and affordable, with lower interest rates and improved guarantees.

Furthermore, efforts to enhance productivity, efficiency, and digital marketing for small businesses are crucial for enhancing their competitiveness in the market.

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