Entrepreneurship and small business trends in Brazil

Recent data highlights the scale and growth of entrepreneurship in Brazil, encompassing both informal nanoentrepreneurs and registered small businesses.

A study commissioned by Natura indicates that Brazil has at least 19 million nanoentrepreneurs, a category defined by upcoming tax reforms for those with annual gross revenues below R$ 40.5 thousand. Approximately 15.5 million of these individuals work independently without a corporate taxpayer ID (CNPJ), representing about 60% of the country’s informal workers. This group is expected to be exempt from certain goods and services taxes starting in 2027.

Concurrently, data from Sebrae shows that entrepreneurship grew by 14.3% between January and August 2026, with 3.93 million new small businesses opened. While the Southeast region led in the number of new companies, the state of Amapá recorded the highest growth rate at 34.1%. Micro, small, and individual micro-entrepreneurs (MEIs) currently account for 24 million of the nation’s 25.4 million active CNPJs and generate 80% of formal jobs, though experts note that these businesses continue to face challenges regarding access to credit and high interest rates.