Brazil entrepreneurs face record debt and bureaucratic hurdles

Entrepreneurs in Brazil face a dual reality of economic contribution and significant systemic hurdles. Data from Serasa Experian indicates that Brazilian companies ended 2025 with R$ 213 billion in debt, a record level of delinquency driven by high interest rates and a complex tax burden.

With over 25 million active companies in the country, including more than 13 million Microentrepreneurs (MEI), small businesses are vital for local employment. However, many struggle with an oppressive bureaucratic system, including difficult processes for obtaining permits and complying with frequent legislative changes.

In contrast to these systemic challenges, some sectors are finding growth through innovation. In Florianópolis, foodtech startups are utilizing vertical farming and automation to produce nutrient-dense microgreens for urban markets. Additionally, new business models are emerging in sports management, such as specialized career services for female football players, and service-oriented ventures surrounding amateur and professional sports.