Only 56% of Brazilian companies survive for more than 2 years, reveals Asaas survey

A recent Asaas survey reveals that more than half of Brazilian companies cannot exceed the two-year mark, with Individual Microentrepreneurs (MEIs) facing the greatest challenges: 79% end their activities in this period. The survey, based on the Business Map and IRS data, shows that only 56% of limited companies survive between 12 and 34 months in Brazil.

The analysis made by fintech was elaborated from the Business Map published by the Federal Government in the last four months of 2023 and in data from the Federal Revenue Service on the opening and closing of companies, from the first registered in Brazil (CNPJ 0001) to the most recent. The methodology used by Asaas allowed to identify patterns of survival, performance by size, region and sector.

Among the data collected, in 2023, the MEIs were the most vulnerable category, with 79% ending its activities, while microenterprises accounted for 18% of closures.The Southeast region concentrated 50% of bankruptcies, followed by South (19%) and Northeast (17%).

Piero Contezini, co-founder and president of Asaas, points out that high interest rates have contributed to this challenging scenario for SMEs. “With Selic elevated, access to credit becomes a challenge, especially for MEIs. This affects not only consumption, but also raises the” bankruptcy rate, he explains.

As the economic scenario becomes more challenging, it is crucial that companies adopt innovative technologies.The analysis made by Asaas also identified that, in the same period analyzed, the survival rate of companies that used fintech financial management solutions, between 12 and 34 months, reached 78%.

“The implementation of financial management solutions, such as automation, is a way to be explored. Automation contributes to the reduction of errors and allows managers to focus even more on business planning and strategy. Before automation, an employee spent about 18 days a month in the billing process. Today, this time can be reduced to only 5 minutes a day”, he adds.

With 14 years of history, Asaas is one of the leading fintechs in Brazil, accumulating more than 2.3 million accounts created and growing more than 100% per year in the last five years.