Small Companies Grow 8.6% in Rio, Brazil

Small company PipeWay from Rio, Brazil 2008 is shaping up as a banner year for Brazilian small businesses. Revenues of micro and small companies from the state of Rio de Janeiro, in southeastern Brazil, posted real growth of 8.6% in February, in comparison with the same period in 2007.

According to the Micro and Small Company Indices for the State of Rio de Janeiro (Impe), a study by the Rio de Janeiro branch of the Brazilian Micro and Small Business Support Service (Sebrae) and Getúlio Vargas Foundation (FGV), the service sector pulled the values up, with growth of 9.8%.

The trade sector was close after it, with growth of 8.8% and industry posted 2.6%. With regard to regions, the interior presented the greatest growth, with 14.3%, against 6.9% of the metropolitan region.

The good performance was not limited to revenues. Salaries and numbers of employees also rose when compared to the same month in 2007. The real growth in income was 6.4%, boosted by industry (9.9%).

The service sector came next, with 6%, and trade grew 5.7%. Once again, companies in the interior boosted the growth, 12.9%. The increase in the metropolitan region was 4.5%.

Average salaries rose 4.2% in February 2008. In the service sector, the increase was 6.7%, in industry, 5.8%, and in trade, 1.2%. In the interior, the growth was 6.3% and, in metropolitan regions, 3.8%.

The results found show that in February this year, micro and small employer companies in the state posted revenues of 4.4 billion Brazilian reais (US$ 2.6 billion), employed 1.9 million people and injected into the economy, in terms of employee income, 1 billion reais (US$ 600 million).

"The February figures show not only that micro and small companies have been presenting constant growth, but also showing the potential of the interior. The good performance also shows the healthy conditions of the state economy.

"These enterprises represent approximately 99% of the enterprises in the state and employ 40% of the official labor. That means that micro and small companies are mainly responsible for the net generation of work posts," explained Sergio Malta, superintendent director at Sebrae Rio.

Sebrae

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