Small businesses account for more than 96 per cent of active companies in Brazil and contribute 26.5 per cent of the country’s gross domestic product (GDP). The sector comprises more than 24 million active business registrations and remains an important source of employment and income. This was reported by Brasil 247, a partner of TV BRICS.
Small enterprises also play a significant role in employment. In July 2026, they accounted for eight out of every 10 new formal jobs created in Brazil. The General Law, adopted in 2006, established a differentiated framework for smaller businesses and paved the way for the Simples Nacional system, which allows eligible enterprises to pay several taxes through a single collection mechanism.
The reforms have also accelerated business registration. While opening a company took an average of 70 days before 2006, digital procedures and simplified requirements have reduced the process to less than 24 hours. The changes have helped entrepreneurs manage administrative responsibilities and plan their finances more effectively.
According to experts, the legislation had helped expand economic opportunities for entrepreneurs. They highlight the importance of accessible regulations and simplified procedures in supporting business development, employment and social mobility.
Looking ahead, representatives of the sector are calling for further improvements, including updated revenue thresholds for individual microentrepreneurs and microenterprises, smoother transitions between business categories and simpler digital procedures linked to Brazil’s tax reform. These measures are intended to strengthen the operating environment for small businesses and support their continued contribution to national economic growth.