Brazil's micro and small enterprises see modest activity rise but lag in digital maturity

The SumUp Index for Brazilian micro‑ and small‑businesses rose 4.61% in May compared with April, driven by strong Mother’s Day sales, though activity remains 5.43% lower than May 2025 amid high interest rates and inflation.

A Sebrae/SC survey of 889 small firms in Santa Catarina found that 81.6% are still at early stages of digital transformation, with only 1.6% reaching an advanced level. The study highlighted limited integration of digital tools into strategy and management.

Research by Sebrae, FGV and Google shows that 57% of micro‑entrepreneurs and 50% of small firms prioritize revenue growth when adopting “all‑in‑one” digital solutions, while medium and large companies focus mainly on cost reduction.

The Brazilian e‑commerce sector is projected to exceed R$ 234 billion in 2025, yet 90% of e‑commerce startups fail within the first 120 days, underscoring the challenges faced by new digital retailers.