The General Data Protection Law (LGPD) was a watershed in the way Brazilian companies of all sizes handle personal information. However, although the legislation is uniform, the paths to compliance are uneven. Small and medium-sized enterprises (SMEs), which represent the majority of the country’s businesses, face specific challenges that go beyond just a lack of budget. It is a matter of governance culture, technical-legal ignorance, and strategic prioritization absence.
A survey conducted by Sebrae recently revealed that SMEs’ compliance with LGPD is still far from necessary. Although 80% of entrepreneurs claim to have heard of the legislation, only 5% say they know it in depth. More concerning is the fact that 77% of small businesses have not taken any concrete compliance measures, even almost five years after the law came into effect. Additionally, 52% of entrepreneurs cannot measure the impact of cyber incidents and demonstrate low familiarity with sensitive data handling.
The first major challenge is to understand that LGPD is not optional. It is still common, in SME environments, to perceive that the law only applies to large corporations or technology companies. This belief is mistaken and dangerous. LGPD does not make distinctions based on the company’s size, but rather on the treatment of personal data. In other words, any organization that collects, stores, or uses identifiable data from customers, employees, or suppliers is subject to the law.
Secondly, there is a real challenge in translating the legal requirements of the LGPD into clear internal processes. The absence of legal teams or specialized compliance within the company structure demands creative and accessible solutions. However, what is often seen is an attempt to ‘copy and paste’ ready-made templates from the internet or to adopt formal measures without corresponding practical changes in daily operations. This approach is not only ineffective but also poses a legal risk: appearing to comply without actually implementing it.
Another critical point is the fragility in information security. The LGPD requires technical and administrative measures appropriate to data protection. However, a large part of SMEs operate with limited infrastructure, without access control, without regular backups, and with low maturity in cyber risk management. In this context, the exposure to leaks or incidents is high and often invisible to the managers themselves. The idea that data protection is merely a legal issue is outdated; it is a pillar of security and business continuity.
A challenge that I consider central is that of the controller’s accountability. The LGPD imposes clear duties on data controllers, which cannot be fully outsourced. Even if the processing is outsourced to third parties, the governance and compliance obligation remain with the controller. In SMEs, this figure is usually the owner or CEO, which increases personal exposure to legal and reputational risks. It is essential that this professional understands the impact of the law, not as a barrier, but as an opportunity to raise management standards and build trust with stakeholders.
In addition, the market still lacks support mechanisms tailored to the reality of SMEs. The National Data Protection Authority (ANPD) itself has recognized this by publishing regulations aimed at small agents. However, such tools need to be more widely publicized, discussed, and intelligently applied. The legal sector plays a crucial role in translating these standards into viable solutions, in an educational and practical manner, without generating panic or excessive bureaucratization.
It is necessary to say that adapting to the LGPD is not a project with a start and end date. It is a continuous process of institutional maturity that must be incorporated into the company’s strategy. There is no magic formula, but there is an essential starting point, which is to recognize that the processing of personal data involves legal duties, real risks, and trust relationships that underpin business activity in the 21st century.
The LGPD is here to stay. SMEs that understand this deeply and strategically will be ahead, not only in complying with the law but also in building a more ethical, secure, and sustainable organizational culture.
