Brazil’s Microbusiness Boom: A Record-Breaking First Quarter

The first quarter of 2025 marked a historic milestone for Brazil’s entrepreneurial landscape: 1.4 million new small businesses were registered between January and March, a record never seen before.

The growth is driven by resilience, digital transformation and a strong wave of formalization. According to government data, 78% of the new ventures are MEIs (individual microentrepreneurs) a format that allows informal workers to enter the formal economy with tax simplicity and legal protection.

Top sectors include:

• Services (63.7%) – logistics, beauty salons, delivery and transport.

• Commerce (20.8%) – advertising, e-commerce, private education.

• Manufacturing (7.6%) – small-scale food processing and health services.

Regionally, São Paulo, Minas Gerais and Rio de Janeiro lead in absolute numbers. But the fastest growth rates came from Ceará (+56.8%), Piauí and Amazonas — a shift that reflects deeper inclusion and opportunity in historically undercapitalized regions.

Why does it matter for investors?
Because Brazil’s small business ecosystem is no longer just survivalist, it is becoming a scalable platform for innovation, digital adoption and decentralized impact. New entrepreneurs are creating real income, hiring, and generating local demand, especially in logistics, services, and wellness.

The Política Nacional de Apoio às MPEs has played a key role, offering credit access, simplification and digital infrastructure.

This isn’t just a rebound. It’s a reconfiguration.

→ Small is the new scalable. Local is the new global.