The portrait of Brazilian entrepreneurship is simpler — and tougher — than one usually imagines. In , the country registered 4.25 million new companies, a historic record and an increase of 9.8% compared to the previous year. In total, there are already more than 22 million enterprises in the country, considering headquarters, branches and individual micro-entrepreneurs (MEI). Micro and small businesses, in fact, account for 93.4% of businesses, according to federal government data.
This multiplication of CNPJs is usually celebrated as a sign of vitality, but it hides a less glamorous reality: the majority of these businesses are born without investors, with little or no access to credit, and depend on almost surgical discipline to survive.
And surviving is not trivial, especially for those who start from scratch. According to the Brazilian Micro and Small Business Support Service (), MEIs are the category of companies that have the highest mortality rate in Brazil: 29% close after 5 years of activity.
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Behind these numbers is an uncomfortable truth: entrepreneurship without capital is not the exception, but the rule. And this rule imposes on Brazilian entrepreneurs a routine of tough choices. Scarcity does not allow for the luxuries of infinite experimentation; every wrong decision is costly, every deviation from the route can be fatal. It is in this hostile environment that, paradoxically, the most resilient companies emerge. Not because of a heroic vocation, but because the lack of resources forces us to create businesses that can sustain themselves, right from the first customer.
The contemporary mythology of entrepreneurship in startup times tends to value speed and access to large investment contributions. But, in Brazil, the path is different. In fact, I believe access is still scarce, as well as expensive.
This condition, which could be seen as weakness, can also be understood as forced discipline. Starting a business without an investor requires focus. The business does not survive on narratives or fundraising rounds; survives on positive margins, recurring customers, a product or service that solves concrete problems. The market, not the investor, is the immediate judge. This pressure can be cruel, but it is also pedagogical.
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Some lessons can be learned from it. For example, the entrepreneur who is born without an investor needs to validate the problem before solving it: only the customer, via repurchase, finances the business. Dispersing energy on multiple fronts is a recipe for failure; the strategy is to resign. With lean cash flow and fast turnover, every decision must aim at survival.
In a limited credit environment, solid product comes before financing. Selling direct accelerates learning and protects margin, while simple processes ensure consistency. Scale is a consequence of daily discipline, not haste. In Brazil, opening a company is common; staying requires focus, resilience and the courage to grow less noisy, but more lasting.
But the lesson is also that scaling is not synonymous with success, nor is attracting investment. The metric that matters is going through cycles with financial health and relevance to the customer. Persisting, more than growing, is the true sign of strength in Brazilian entrepreneurship.
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Ignoring this reality is preferring the fantasy of shortcuts. The faithful portrait shows something else: that the Brazilian entrepreneur learns to walk without crutches. And perhaps this is precisely the greatest virtue of this ecosystem. Scarcity, when managed clearly, can not only shape short-term survival but build the resilience that many businesses backed by abundant capital lack. In the country that opens the most companies, the real difference is not starting; is to remain.
