HomeArticlesThe main challenges in adapting small and medium-sized enterprises to the LGPD

The main challenges in adapting small and medium-sized enterprises to the LGPD

The General Data Protection Law (LGPD) was a watershed moment in how Brazilian companies of all sizes handle personal information. However, although the legislation is unique, the paths to compliance are not uniform. Small and medium-sized enterprises (SMEs), which represent the majority of businesses in the country, face specific challenges that go beyond a simple lack of budget. It is a matter of governance culture, technical-legal unfamiliarity, and a lack of strategic prioritization.

A recent survey conducted by Sebrae revealed that SME compliance with the 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 adopted any concrete compliance measures, even nearly five years after the law came into effect. Furthermore, 52% of business owners are unable to measure the impact of cyber incidents and demonstrate low familiarity with handling sensitive data.

The first major challenge is understanding that the LGPD is not optional. It is still common in SME environments to perceive the law as only applicable to large corporations or technology companies. This belief is mistaken and dangerous. The LGPD does not make distinctions 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 the LGPD's legal requirements into clear internal processes. The absence of in-house legal or specialized compliance teams 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 represents a legal risk: appearing compliant without effectively implementing it.

Another critical point is the fragility in information security. The LGPD requires technical and administrative measures adequate for data protection. However, a large portion of SMEs operate with limited infrastructure, without access controls, without regular backups, and with low maturity in cyber risk management. In this context, exposure to leaks or incidents is high and often invisible to the managers themselves. The idea that data protection is solely a legal issue is outdated; it is a pillar of business security and continuity.

A challenge I consider central is that of controller accountability. The LGPD imposes clear duties on data controllers, which cannot be fully outsourced. Even if processing is operationalized by third parties, the obligation for governance and compliance remains with the controller. In SMEs, this role is usually the owner or CEO themselves, 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.

Furthermore, the market still lacks support mechanisms tailored to the reality of SMEs. The National Data Protection Authority (ANPD) itself has recognized this by publishing guidelines aimed at small-scale agents. However, such instruments need to be more widely disseminated, debated, and applied intelligently. The legal sector has a crucial role in translating these norms into viable solutions, in an educational and practical manner, without generating panic or excessive bureaucratization.

It must be said that compliance with the LGPD is not a project with a start and end date. It is an ongoing process of institutional maturation 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 come out ahead, not only in legal compliance but in building a more ethical, secure, and sustainable organizational culture.

Patricia Punder
Patricia Punderhttps://www.punder.adv.br/
Patricia Punder, lawyer and compliance officer with international experience. Professor of Compliance in the post-MBA program at USFSCAR and LEC – Legal Ethics and Compliance (SP). Co-author of the "Compliance Manual," published by LEC in 2019, and "Compliance – Beyond the Manual 2020."
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