The General Data Protection Law (LGPD) was a turning point in the way Brazilian companies of all sizes handle personal information. However, while 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 a simple lack of budget. It involves a culture of governance, a lack of technical and legal knowledge, and a lack of strategic prioritization.
A recent survey conducted by Sebrae revealed that SMEs’ compliance with the LGPD is still far from what is necessary. Although 80% of entrepreneurs claim to have heard of the legislation, only 5% say they have in-depth knowledge of it. More worrying 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. Furthermore, 52% of entrepreneurs are unable to measure the impact of cyber incidents and demonstrate little familiarity with the processing of sensitive data.
The first major challenge is understanding that the LGPD is not optional. It’s still common in SME environments to believe that the law only applies to large corporations or technology companies. This belief is mistaken and dangerous. The LGPD doesn’t 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.
Second, there’s a real challenge in translating the LGPD’s legal requirements into clear internal processes. The lack of specialized legal or compliance teams within the company’s structure demands creative and accessible solutions. However, what we often see is an attempt to “copy and paste” ready-made templates from the internet or to adopt formal measures without a corresponding practical change 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 of information security. The LGPD requires appropriate technical and administrative measures to protect data. However, many SMEs operate with limited infrastructure, no access control, no 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 merely a legal issue is outdated; it is a pillar of security and business continuity.
A challenge I consider central is that of controller accountability. The LGPD imposes clear obligations on data controllers, which cannot be fully outsourced. Even if processing is performed by third parties, the responsibility for governance and compliance remains with the controller. In SMEs, this figure is often the partner or CEO, which increases personal exposure to legal and reputational risks. It is crucial that these professionals understand the impact of the law, not as a barrier, but as an opportunity to raise management standards and build trust with their stakeholders.
Furthermore, the market still lacks support mechanisms geared towards the needs of SMEs. The National Data Protection Authority (ANPD) itself has already acknowledged this by publishing regulations aimed at small businesses. However, these instruments need to be better 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’s important to emphasize that compliance with the LGPD isn’t a project with a start or end date. It’s an ongoing process of institutional development, which must be incorporated into the company’s strategy. There’s no magic formula, but there is an essential starting point: recognizing that the processing of personal data involves legal obligations, real risks, and relationships of trust 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 complying with the law, but also in building a more ethical, safe, and sustainable organizational culture.
