Exit rate of companies in Brazil 20.7%, highest since 2008
Staff Writer |
Between 2013 and 2014, the exit rate of enterprises (ratio between the number of firms closed and the total) increased by 6.1 percentage points, with a change from 14.6% to 20.7%, the highest rate in the series which started in 2008.
Article continues below
That figure corresponds to a total 944.0 thousand firms leaving the market.
On the other hand, the entry rate (ratio between the number of entrances and the total) fell from 18.3% in 2013 to 15.9% in 2014, the lowest figure since 2008. A total 726.3 thousand enterprises started their activities in 2014.
The survival rate (ratio between the number of surviving firms and the total) was 84.1%, also the highest rate in the series, representing, however, a total 3.8 million surviving companies, fewer than in 2013.
For the first time, the balance was negative, with a decrease of 4.6% in the number of enterprises (minus 217.7 thousand ones) between 2013 and 2014. Despite this decrease, total salaried occupations increased 0.5% (170.4 thousand) in the period.
Entering firms accounted for 847.1 thousand new job posts in the period, out of which 29.9% (252.9 thousand) were created in trade, the activity which recorded the biggest number of decreases in salaried persons (134.7 thousand).
In 2014, 39.6% of the 694.5 thousand companies created in 2009 were still in the market, that is, five years after their birth, more than 60% of the companies had not survived.
In this period, the sections of activities which recorded the highest survival rates were human health and social services (55.3%), real estate activities (51.5%) and professional, scientific and technical activities (47.3%).
From the total active enterprises in 2014 (4.6 million), 0.7% (31.2 thousand) were high-growth ones, and recorded an average increase of salaried employed persons above 20% a year, for a period of three years, with at least 10 employed persons in the beginning of the first year analyzed.
In relation to companies with 10 or more employed persons (488.8 thousand), they represented 6.4%. These companies employed 15.4% (4.5 million) of the salaried persons in companies with 10 or more employed persons, and administrative activities and complementary services (28.3%) recorded a biggest proportion of salaries in high growth companies. ■