Brazil's Small Business Surge and Record Export Growth in Early 2026

Brazil registered a historic 1,033,208 new small businesses in January and February 2026, marking a 3% increase compared to the same period in 2025. This surge, reported by the Federal Revenue Service and compiled by the Brazilian Micro and Small Business Support Service (Sebrae), represents the highest number of new registrations for any two-month period. Individual micro-entrepreneurs (MEIs), who earn up to 81,000 reais ($15,500) annually, accounted for nearly 80% of these new registrations. The services sector dominated this growth, comprising approximately 65% of all formalizations, with courier delivery, freight transport, and advertising being the most common activities.

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Small businesses, which include microenterprises and small companies, constituted 97.3% of all new legal entities formed during this period. In 2025, these firms were responsible for over 80% of net formal job creation in Brazil, highlighting their critical role in the country's labor market. The MEI category has been particularly effective in formalizing workers previously in the informal sector, contributing to the tax base. Analysts attribute this growth to Brazil's simplified tax regime for small businesses, known as Simples Nacional, and the National Export Culture Policy (PNCE), which aims to integrate smaller firms into international supply chains.

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In a related development, Brazil ended 2025 with a record 29,818 exporting companies, a 3.4% increase from the previous year. This growth was largely driven by mid-sized and large firms, but microenterprises also saw significant gains, with 242 new participants. The total number of microenterprises involved in exports reached approximately 6,000. The manufacturing sector remained the backbone of Brazil's export base, accounting for 27,013 of the total exporting companies, while total goods exports reached $348.7 billion, generating a trade surplus of $68.3 billion.

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The Brazilian government has implemented various initiatives to support this growth, including tax reforms and expanded export financing instruments. The PNCE, introduced in 2023, coordinates efforts among federal, state, and municipal governments to enhance the participation of smaller firms in international trade. In 2025, the government’s export promotion agency, ApexBrasil, reported assisting a record 23,386 companies, with over half being first-time clients.

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Despite these positive trends, challenges remain. The growth of small businesses and exporting companies will face pressures from global economic disruptions, including the ongoing Iran war and shifting trade policies under the Trump administration. Critics argue that while the government’s initiatives have fostered growth, the sustainability of this momentum in a volatile global market is uncertain.

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• “The Engine of Formal Employment The scale of small business formation matters because these firms are the backbone of Brazil’s formal labor market.” — Sebrae Data Analyst

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• “Within the smaller firms, microenterprises stood out with 242 new entrants, pushing their total to approximately 6,000 — a sign that Brazil’s export culture is reaching further down the business size ladder.” — Trade Expert

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This dual record of small business formation and export growth illustrates a significant shift in Brazil's economic landscape, positioning the country for potential resilience amid global challenges.

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