Number of entrepreneurs expected to peak in 2020

The brazilian's entrepreneurial vocation has never been higher and, in times of crisis, it becomes even more evident. By 2020, Brazil is expected to reach the highest level of initial entrepreneurs in the last 20 years, with approximately 25% of the adult population involved in opening a new business or with a business with up to 3.5 years of activity. The estimated record is verified according to the analysis of the historical series of the Global Entrepreneurship Monitor (GEM) survey, which points to an increase in initial entrepreneurship, especially in periods of recession, such as those that occurred between the years 2008-2009 and between the years 2014-2016. This year, it is estimated that the unprecedented crisis, caused by the advance of the pandemic of the new coronavirus, should boost the number of people who will seek entrepreneurship as an alternative income. In 2019, GEM pointed out that the country reached 23.3% of the initial entrepreneurship rate, considered the highest mark so far and the second best total level of entrepreneurs (38.7% of the adult population, between 18 and 64 years) since 2002, the first year of the historical series of this variable. According to the latest survey (GEM 2019), it is estimated that there are a total of 53.4 million Brazilians ahead of some entrepreneurial activity, involved in the creation of a new venture, consolidating a new business or making efforts to maintain an already established enterprise. Gem 2019 indicators, held in 55 countries and supported by Sebrae in Brazil, confirm a trajectory of resumption of initial entrepreneurship in the country after the fall recorded between 2016 and 2018. The significant increase in the rate of initial entrepreneurs in 2019 is due to the significant increase in the rate of nascent entrepreneurs, with an expansion of 6.4 percentage points compared to 2018. The study also revealed that the rate of potential entrepreneurship in 2019 was 30.2%, meaning that out of every 10 adult Brazilians who are not considered entrepreneurs, three of them would like to start their own business in the next three years. "With one of the results of the pandemic of the new coronavirus, we believe that in this year 2020, the group of initial entrepreneurs will grow to the new historical record, with a proportion of 25% of the total adult population. This number, according to our projection, will be pulled by women, by black people, in general, the groups that are most often affected by the growth of unemployment", comments the president of Sebrae, Carlos Melles. These figures reinforce, according to Carlos Melles, the importance that policies and programs aimed at entrepreneurship are sufficiently comprehensive to cover the most diverse profiles of aspirations and expectations related to the theme. The Initial, Established and Total Entrepreneurship rates recorded in the 2019 GEM survey place Brazil in a prominent position among the 55 countries that participated in the survey. Brazil has the 4th highest Initial Entrepreneurship Rate – businesses of up to 3.5 years of existence – (TEA=23.3%) countries included in the survey. This mark is higher than those registered, for example, in brics countries, USA, Colombia, Mexico and Germany. Considering the Rate of Established Entrepreneurs - businesses with more than 3.5 years of existence - (TEE=16.3%), Brazil has the 2nd largest global brand. The result also puts the country in a leading position among the BRICS, USA, Colombia, Mexico and Germany. Similar highlight is that achieved with the Total Entrepreneurship Rate, where Brazil has the 4th best brand (TTE=38.7%) the world and the highest rate among BRICS. In 2019, gem research presents an innovation when evaluating the motivation to start a new business. Instead of the categories "by necessity" and "by opportunity", the research began to consider new possibilities. Four statements were presented to the entrepreneurs, so that they would express themselves positively or negatively in relation to each of them. Almost 90% of brazilian initial entrepreneurs agree (in whole or in part) that job shortages are one of the reasons for developing the entrepreneurial initiative with which they are involved. Compared to the other 54 countries that participated in the survey, Brazil is among the 10 countries that most consider job scarcity as a motivating factor to undertake, along with South Africa and India, which are part of BRICS. With the pandemic, it is estimated that this motivation will gain even more relevance this year. Similarly, just over half point out that "making a difference in the world" (contributing to a better world) was one of the reasons they embarked on. In contrast, just over a third of entrepreneurs confirmed that the ambition to build great wealth or obtain very high income is present among the motivations. And finally, a quarter of entrepreneurs also mention that they have engaged in a new business to continue a family tradition. The GEM survey also analyzed the motivation to undertake based on the criteria of gender, race and age group. The scarcity of jobs was the motivational factor chosen by most women, blacks, and those between 35 and 54 years old. Despite the difficulties in the labor market, it is the majority of women, with 53%, who believe that "making a difference in the world" is motivation to undertake, and the proportion is higher among white and young people. In the group of men, 42% are more motivated by building wealth or obtaining higher income when undertaking. Family tradition as a reason to start a new business stands out among older people, between 55 and 64 years old.