April 11, 20 - 6:38 pm - LABS

600,000 small businesses closed their doors in Brasil due to Covid-19

According to a survey carried out by the Brazilian Support Service for micro and small companies Sebrae, and obtained exclusively by CNN Brazil, at least 600,000 micro and small businesses closed their doors, and 9 million employees were laid off due to the economic effects of the new coronavirus pandemic in the country.

The survey also shows that 30% of entrepreneurs had to seek loans to maintain their businesses. Still, 29.5% of them await a response from financial institutions, and 59.2% had their requests denied.

Also according to CNN, more than half (55%) of micro and small business owners say that they will have to seek loans to keep their businesses running without making layoffs.

The survey was carried out online and listened to 6,080 individual microentrepreneurs, micro and small businesses between the 3rd and 7th of April.

Although entrepreneurs are looking for loans, the survey also shows that 29% of them are unaware of the lines of credit being made available to avoid layoffs and 57% have only heard about it, the survey shows.