July 17, 20 - 12:29 pm - LABS

More than half of the 1.3 million companies closed during the quarantine in Brazil won’t open again

A survey released yesterday by the Brazilian Institute of Geography and Statistics (IBGE) shows that more than half (716,300) of the 1.3 million companies that temporarily closed during the quarantine period in Brazil will not open again.

Among the total companies that closed in the period, 522,000 said they did so due to the restrictive measures imposed by the pandemic. Small businesses, with low cash flow and difficult access to credit, account for 99% of them, says the newspaper Valor Econômico.

According to IBGE, about a third of them dismissed employees and only 12.7% had access to emergency credit. Among the 2.74 million companies that remained in operation in the period, 34.6% had to dismiss people.

According to IBGE data, that means that the country would have lost 18% of its total number of companies.

The data are from the first survey “Pulso Empresa”, released yesterday by the IBGE, which will measure, every 15 days, the impact of the pandemic on the business sector, extrapolating questionnaires carried out with 2,023 entrepreneurs to a register of 4 million companies detected before of the pandemic.