Brazil opened 4.6 million new small businesses from January to November 2025, a number that already exceeds the result for 2024, when 4.1 million companies were created. The data show a 19 percent increase over the same period last year, consolidating the best performance since they began to be compiled.

Small businesses accounted for 97 percent of the companies opened in the country in 2025. Among them, 77 percent are individual microentrepreneurs (MEI), 19 percent are microenterprises, and 4 percent are small businesses.

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The head of the Brazilian Micro and Small Business Support Service (Sebrae), Décio Lima, says that the growth reflects entrepreneurs’ confidence in the economic scenario. According to him, the country is experiencing “full employment and inflation under control,” factors that encourage the opening of new businesses.

“Sixty percent of Brazilians dream of becoming entrepreneurs. Entrepreneurship is a gateway to inclusion, job creation, and income,” he said.

In November, the country registered the opening of 350,000 new small businesses, 28,000 more than in the same month in 2024.

Services lead new registrations

The service sector accounted for 64 percent of new businesses opened through November. In this segment, the opening of MEIs grew 24.5 percent compared to the same period in 2024. Next came commerce, with 21 percent of the total, and industry, with 7 percent.

São Paulo (29%), Minas Gerais (11%), and Rio de Janeiro (8%) were the states with the highest number of small business openings in 2025.

Brazil recorded its best results in income, inequality, and poverty since this time series began in 1995, according to a technical note from the Institute for Applied Economic Research (Ipea). The study was released this Tuesday (Nov. 25) with data from the Brazilian government’s statistics agency, IBGE.

Over 30 years, per capita household income grew by about 70 percent, the Gini coefficient fell by nearly 18 percent, and the extreme poverty rate dropped from 25 percent to less than 5 percent.

Progress was uneven, concentrated between 2003 and 2014, and then resumed strongly between 2021 and 2024. After a prolonged cycle of crises between 2014 and 2021 – marked by recession, slow recovery, and the severe impact of the pandemic – per capita income reached its lowest level in a decade.

The trajectory changed from 2021 onwards: in three consecutive years, average income grew by more than 25 percent in real terms, accompanied by a significant drop in inequality.

“The results show that it is possible to intensely reduce poverty and inequality, but that these movements can also be interrupted or even reversed by various factors. And that it is important to combine different means to achieve these fundamental national objectives,” highlighted Marcos Dantas Hecksher, one of the authors of the study.

Researchers attribute the recent improvement to a booming labor market and the expansion of income transfers, both responsible for almost half of the reduction in inequality and the fall in extreme poverty between 2021 and 2024.

Programs such as Bolsa Família income transfer program, Benefício de Prestação Continuada (Continuous Cash Benefit - BPC), Auxílio Brasil (Brazil Aid), and Auxílio Emergencial (Emergency Aid) became more effective after 2020.

However, the impact of transfers weakened in 2023 and 2024 with the end of the expansion cycle, while the labor market continued to exert a strong influence on social indicators.

“Inequalities need to be combated through all public policies - not only through better targeting of social spending to the poorest, but also through a fairer distribution of taxes,” said Hecksher.

In 2024, the country recorded the lowest poverty levels in the series, yet 4.8 percent of the population lived below the extreme poverty line (USD 3 per day) and 26.8 percent below the poverty line (USD 8.30 per day).

More than 60 percent of the reduction in extreme poverty between 2021 and 2024 resulted from improved income distribution, according to the study’s breakdown.

The technical note points out that the progress observed in the post-pandemic period is likely to lose momentum with the end of the expansion of social welfare policies, making the labor market even more decisive in the coming years.

The authors warn that household surveys tend to underestimate very high incomes and some social transfers, requiring caution when interpreting the results.

The document concludes that the recent period represents an important structural change: after years of stagnation or regression, income, inequality, and poverty indicators have all improved simultaneously and rapidly.