|
 Survival of businesses in Brazil is the highlight of the Company Demographics survey, disclosed this Thursday, November 29, by the IBGE (Brazilian Institute of Geography and Statistics). Of the total of 737,950 firms established in 1997 throughout the country, only 51.6% remained active as of 2005.
Enterprises with up to four employees answered to 90.8% of the total number of companies established. According to the analyst in charge of the survey, Kátia Carvalho, the IBGE observed that of the companies established in 1997, eight years after their establishment, in 2005, nearly half had already closed their doors. "Nearly half the companies was already out of the market. It is a survival problem."
Kátia Carvalho stated that the survey does not provide an explanation for those trends. "We can only portray what is happening," said the technician at IBGE. She admitted, however, that aspects of the economic conjuncture might be linked to the extinction of companies in Brazil.
"These factors might definitely play a role." The analyst called attention to the fact, though, that the "survey has no means for determining the cause."
According to the survey by the IBGE, the ratio of companies established in 1997 that survive decreases over time in all ranges of occupied personnel, with the lowest survival rates being recorded among smaller-sized companies, of up to four occupied persons.
According to the survey, in the first year of existence, 19% of the enterprises closed their doors. Survival rate in 1998 stood at 81%. Two years later, the rate of defunct companies rose to 27.2%. Eight years later, the survey shows that only 51.6% of the companies established in 1997 remained active.
By region, one can observe that the lowest enterprise survival rate occurred in the North of the country, where 46.5% of the units established in 1997 remained active as of 2005.
The highest survival rate after the eight-year period was recorded in the South of Brazil: 53.8%. A total of 51.8% companies remained active in the Southeast, 51.6% in the Northeast and 47.8% in the Midwest.
The analysis by size indicates that 5.3% of the companies established in the range of up to five occupied persons entered the next highest range, of between 5 and 19 occupied persons, in the year after establishment.
The IBGE technicians claimed, however, that a company not entering a higher range does not imply that it did not grow, only that the growth was not sufficient for the occupied personnel range to be changed.
ABr
 |
Subscribe to this comment's feed
The small, coastal town of Condé is located just a twenty minute's drive from João Pessoa, the capital of Paraíba. The Northeast of Brazil has historically been a place of encounter and mixing between peoples. For millenia groups of indigenous people fished, farmed, migrated and sometimes fought along this large, fertile area. 
The Brazilian diplo-MÁ-cia (bad diplomacy) carries on its accelerated course towards the non-acknowledgment of human rights, although sometimes it takes pleasure in saying that it does precisely the opposite. The visit of Iran's president, Mahmoud Ahmadinejad, is another example of a diplomatic omission that verges on hypocrisy. 
On July 4, 2006, representatives of Argentina, Brazil, Paraguay and Uruguay met in Caracas to sign the protocol for the entrance of Venezuela into the Southern Common Market (Mercosur). After two and a half years, the protocol was approved by the legislative bodies of Argentina and Uruguay, and as of now it may be only days away from being ratified by the continent's economic megalith, Brazil. 
Some sectors of the fight against AIDS have suggested that Thabo Mbeki, the former president of South Africa, committed genocide through his absence from the fight against the illness in his country throughout his two terms. 
One hundred and eleven years after Brazil abolished slavery, the number of workers deprived of their freedom is still huge. They raise cattle, produce charcoal, sugar cane or timber. Some of them, most undocumented Bolivians, work in basements of small apparel factories in São Paulo and other metropolis. 
On November 7, 2009 a few friends and I had an opportunity to take a look inside a Brazilian jail outside the city of Rio de Janeiro. We were able to take some amateur footage of our experience on video (see link below). It's no surprise, of course, that the typical Brazilian jail lacks some of the functionality of those in North America or Europe, but our experience that day was quite shocking. 
Depletion of the Amazon Rainforest is not a new concern facing environmentalists, biologists, ecologists, and a growing number of the Amazonian indigenous peoples. For decades they have feared for the fate of the world's most biologically diverse and species-rich hothouse. 
Geisy Arruda made history this week in Brazil, but for all the wrong reasons. What began as a poorly planned fashion statement has become a worldwide tale. Geisy decided to wear a pink mini-dress to her private college in São Paulo state, and after that, all hell broke loose. 
The push of vigilante groups in Rio de Janeiro's favelas (shantytowns) in the last three years is the most important and alarming information of the just-released study by the Rio de Janeiro University's Violence Research Center (Nupev-Uerj). 
A dispute over drug trafficking territory in Rio de Janeiro has intensified lately, leaving in its wake unprecedented acts of violence, such as the downing of a police helicopter in the northern zone of the city on October 17. Three policemen died and another two were injured. This event has drawn the attention of the international media, who are raising the issue of public security for the 2016 Olympics to be held in Rio.