FGV study evaluates COVID-19 pandemic’s impact on small businesses
According to a study by FGV Projetos, coordinated by its executive manager, Luiz Gustavo Barbosa, in partnership with the Brazilian Micro and Small Enterprise Support Service (SEBRAE), 86% of companies are still in business, and 31% are doing as well as before the pandemic. Notably, there has been an 86% increase in the use of PIX. Nine out of 10 companies now accept it as a payment means.
PIX is an instant payment method created by the Brazilian Central Bank, which makes transfers in less than 10 seconds, 24/7, free of charge. As of August 2021, 77% of businesses were using it. The growing use of PIX has been observed in practically all sectors. Another FGV study, in February 2021, found that 94% of people were comfortable using the new payment method.
Services that demand physical contact have changed the most because of the pandemic. This is the case with gyms and physical activities (73%), the creative economy (65%), tourism (65%), education (64%) and beauty (64%).
The proportion of companies whose revenue has fallen since the pandemic began has declined to a new low. Currently, the biggest factor hindering businesses from recovering financially is higher costs of raw materials, goods, fuels, rent and electricity.
There has been a significant rise in the proportion of companies using digital tools to sell their products, including social media, apps and the internet. Out of these tools, companies have had the most success with WhatsApp for Business, followed by paid ads on Google.
To see the complete study, click here.