Brazil registers 1.3 million new companies

RIO DE JANEIRO, BRAZIL – After a period of decline, Brazil is again registering an increase in the number of companies starting up. In the first four months of this year, 1.3 million small, medium and large companies started their activities in the country.

If, on the one hand, the number is expressive and may mean, in a short future, the heating of the economy, on the other hand, it is necessary to make the entrepreneur aware of the reality of the business world once Brazil has a history of companies closing in their first years of life.

According to the Brazilian Institute of Geography and Statistics (IBGE), less than 40% of companies manage to survive after five years of activity. In other words, six out of ten close their doors before completing half a decade of existence.

In this sense, the entrepreneur’s training to understand how the business works is essential for its success. The creation of companies means job generation, and their survival is a factor for the increment of the economy and, consequently, for the improvement of the citizen’s life.

But what can be done to make new companies successful? For entrepreneur Ricardo Nunes it is fundamental that entrepreneurs have the knowledge to run their businesses because many companies are born and die quickly due to lack of experience.

In his opinion, the entrepreneur must have clarity about several issues such as cash flow, profit margin of each product, tax calculation, and mainly, that he knows how to separate his personal life from his business not to get lost.

“Many people mix the cash flow with their personal life and lose control, but the most important learning that every entrepreneur needs to understand is that any company lives from sales, that sales are everything in a business, so he must be aware of two basic issues: the direct monitoring of sales and marketing,” he advises.

According to the entrepreneur, many entrepreneurs hire their salespeople, but they don’t follow up on the sales, besides not giving the proper importance to the marketing work, which should be done daily.

“Who wants to sell more has to communicate more, so you have to focus on what is essential. You must be attentive and focus on selling, searching for a good product mix, improving the margin and having the radar on, always observing the market and the competitors”.

Nunes, the founder of Ricardo Eletro, worked in the retail market for 30 years and today works in the area of entrepreneurial training. He is dedicated to teaching entrepreneurs to understand their businesses so they can have a long life.

He shows how to shorten the path to success in his training sessions. Always keeping an eye on what is most competitive and profitable, Ricardo Nunes advises that every company, small or large, must be present in the digital environment.

“You have to sell online and offline. It is necessary to have a very clear awareness of this. Opening companies guarantees jobs, and the opportunity of a job is a great social asset, which allows the citizen to have the independence to grow and develop; that’s why for the country, it is so important that entrepreneurs qualify and keep their business for a long time.”

VARIATION

The increase in the number of companies opened in the first four months of 2022 does not yet signify an improvement in the economy. The 11.5% increase is compared to the last four months of 2021.

Compared with the same period in 2021 (the first four months of the year), the percentage drops to a negative 3.2%, and anyway, it shows a recovery that has been happening slowly, which cannot be ignored.

Of the companies that opened their doors this year, 79% are MEIs, and the other 21% are divided into micro, small, and large companies. A federal government program that simplifies the process of opening has contributed to the growth.

According to the Mapa de Empresas, a tool of the Ministry of Economy which provides indicators regarding the number of companies registered in the country and the average time needed to open a company, in 2022, the average time to open a company is one day and 16 hours, which corresponds to a record in the historical series.

Sergipe was the federation unit presenting the shortest time to open a company in this first four-month period: 15 hours, a drop of 9 hours (37.5%) compared to the last four months of 2021. Bahia recorded the longest time: 3 days and 17 hours.

In the period in which 1.3 million companies were created, another 541,000 were closed. The positive balance is around 800,000 companies, but closing businesses is a cause for concern and reinforces the need for the business community to be qualified.

In this sense, studying and training for the business is an investment that needs to be in the cat’s eye of every company and part of the entrepreneur’s routine as part of the path to success.

With information from DINO