Small businesses in Brazil are still far from digital transformation

Many SMEs are still unaware of how and why to apply technologies for the financial management

03.Dec.2020 13:45 BRT

OECD said that Brazil’s productivity will grow if companies adopt digital transformation;
Only 27% of the businesses said they use an Excel spreadsheet for financial management.

Small businesses in Brazil are still far from digital transformation, according to a survey by the Brazilian Micro and Small Business Support Service (Sebrae), reported by Valor Econômico.

According to Sebrae, 43% of them still do financial management “in a notebook or on a paper sheet.” Another 8% did not know. Only 27% said they use an Excel spreadsheet.

Experts interviewed by Valor said that although the cost is still an inhibiting factor for the digitization, many SMEs are still unaware of how and why to apply technologies for the financial management.

Another survey, on the impact of COVID-19 on small businesses, carried out during the pandemic period, Sebrae identified that innovation is vital importance for business, and that includes the adoption of IT tools and digital presence. “Small business owners who have developed innovative practices have had better results in revenue recovery,” said Wilson Poit, superintendent director of Sebrae in Sao Paulo, to Valor.

Also according to Valor, the Organization for Economic Co-operation and Development (OECD) said that Brazil’s productivity will grow if companies adopt digital transformation. In 2019, productivity in Brazil was only a quarter of that of the U.S.