The General Data Protection Law (LGPD) was a turning point in how Brazilian companies of all sizes handle personal information. However, although the legislation is unique, the paths to compliance are uneven. Small and medium-sized enterprises (SMEs), which represent the majority of businesses in the country, face specific challenges that go beyond simple budget constraints. It’s a matter of governance culture, technical-legal unfamiliarity, and lack of strategic prioritization.
A recent survey conducted by Sebrae revealed that SME compliance with LGPD is still far from adequate. Although 80% of entrepreneurs claim to have heard of the legislation, only 5% say they understand 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 business owners cannot measure the impact of cyber incidents and show low familiarity with handling sensitive data.
The first major challenge is understanding that LGPD is not optional. It’s still common in SME environments to perceive the law as applicable only to large corporations or technology companies. This belief is mistaken and dangerous. LGPD does not distinguish based on company size but rather on the processing 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 difficulty in translating LGPD’s legal requirements into clear internal processes. The absence of specialized legal or compliance teams within the company structure demands creative and accessible solutions. However, what is often seen is an attempt to ‘copy and paste’ templates from the internet or adopt formal measures without corresponding practical changes in daily operations. This approach is not only ineffective but also poses a legal risk: appearing compliant without actually implementing it.
Another critical point is the fragility of information security. LGPD requires appropriate technical and administrative measures for data protection. However, most SMEs operate with limited infrastructure, without access controls, regular backups, and low maturity in cyber risk management. In this context, exposure to leaks or incidents is high and often invisible to managers themselves. The idea that data protection is just a legal issue is outdated—it’s a pillar of business security and continuity.
A central challenge I see is the accountability of the data controller. LGPD imposes clear duties on data controllers, which cannot be entirely outsourced. Even if processing is carried out by third parties, the responsibility for governance and compliance remains with the controller. In SMEs, this role is usually the owner or CEO, which increases personal exposure to legal and reputational risks. It is essential for this professional to understand the law’s impact, not as a barrier but as an opportunity to elevate management standards and build trust with stakeholders.
Moreover, the market still lacks support mechanisms tailored to SMEs’ reality. The National Data Protection Authority (ANPD) itself recognized this by publishing guidelines for small-scale agents. However, these instruments need to be more widely disseminated, debated, and applied intelligently. The legal sector plays a crucial role in translating these regulations into viable solutions, in an educational and practical manner, without generating panic or excessive bureaucracy.
It must be said that LGPD compliance is not a project with a start and end date. It is an ongoing process of institutional maturity that should be incorporated into the company’s strategy. There is no magic formula, but there is an essential starting point: recognizing that personal data processing involves legal obligations, real risks, and trust relationships that underpin 21st-century business activities.
LGPD is here to stay. SMEs that understand this deeply and strategically will be ahead, not just in legal compliance but in building a more ethical, secure, and sustainable organizational culture.
