Micro and small enterprises (MSEs) have established themselves as fundamental pillars of the Brazilian economy. In 2023 alone, this sector was responsible for the creation of more than 1.1 million formal jobs, which represents 80% of the formal jobs available in the country, according to a survey by the Brazilian Micro and Small Business Support Service (Sebrae).
Despite their relevance, these companies face significant challenges to grow and consolidate themselves in an economic scenario marked by instability and bureaucracy. In addition, the new profile of professionals, especially Generation Z, requires adaptation on the part of micro and small businesses.
These employees are looking for more than a good salary; they value flexibility, quality of life and opportunities for personal and professional development.
In this context, offering innovative and low-cost benefits to small businesses has been an effective solution to meet workers’ demands and strengthen the competitiveness of these organizations. In this post, we will explore the main challenges faced by SMEs and how they have innovated to transform their operations and remain relevant even with budgetary constraints.
What are small businesses?
Various institutions adopt different criteria to determine this categorization, considering aspects such as annual revenue, number of employees and gross operating revenue. These parameters allow businesses to be segmented into individual microentrepreneurs (MEIs), microenterprises (MEs), small businesses (EPPs), medium-sized businesses and large businesses, with variations depending on the economic sector and the evaluating institution.
According to Sebrae, annual revenue is one of the main criteria for this classification. MEIs are those with annual gross revenue of up to R$81,000. Microenterprises, in turn, can earn up to R$360,000 per year, while small businesses are those with revenue between R$360,000 and R$4.8 million.
At the same time, the number of employees is also used as a parameter. In commerce and services, micro-enterprises have up to nine employees, while EPPs have between 10 and 49. In the industrial sector, micro-enterprises employ up to 19 employees, and EPPs, from 20 to 99.
The National Bank for Economic and Social Development (BNDES) uses Gross Operating Revenue (ROB) to classify companies. Under this criterion, small companies have an annual income between R$360 thousand and R$4.8 million.
The Brazilian Institute of Geography and Statistics (IBGE) uses a classification based exclusively on the number of employees. In the industrial sector, micro and small businesses are those with up to 99 employees, while medium-sized businesses range from 100 to 499. In commerce and services, MSEs have up to 49 employees, while medium-sized businesses employ between 50 and 99.
The challenges of small businesses
SMEs face structural challenges, such as excessive bureaucracy, high tax burdens and difficulties in accessing credit. These barriers hinder the growth and consolidation of companies, especially in an unstable economic scenario, such as that faced in recent years.
According to data from Sebrae Nacional, approximately 30% of companies close their activities within a period of up to five years.
Additionally, many SMEs face problems with strategic planning and adapting to market changes, which impacts their long-term sustainability.
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In research carried out by SEBRAE, the main causes for the premature closure of companies were identified: poorly developed entrepreneurial behavior (insufficient entrepreneurial attitudes); deficiencies in planning before opening companies; deficiencies in management after opening the business; insufficient support policies for the sector; depressed economic situation and personal problems, among others of lesser relevance.
The reasons for the success of these organizations are closely linked to
ability of these companies to innovate in the management process and in the use of new technologies
For SMEs, which often cannot compete with large companies on salaries, offering innovative and personalized benefits is an effective way to stand out. According to research, benefits that meet specific needs, such as mental health, continuing education or quality of life, have been key in retaining talent.
Management focused on benefits for small businesses
The limitations mentioned above directly impact their ability to invest in new technologies, hire talent, and expand operations. As a result, small businesses need to balance productivity and employee well-being.
According to the study Panorama de Benefícios Corporativos – Percepções e Expectativas para 2025 , 62.87% of Brazilian companies plan to increase their budget for corporate benefits next year. Although a large part of this number is driven by medium and large corporations, small companies have also sought to strengthen their offerings.
Focused on small businesses, the report produced by Onhappy stated that 67% of HR professionals in small companies are concerned about offering benefits that promote employee well-being. This attention reflects a change in perspective: more than fulfilling labor obligations, these companies want to add value to their employees' experience.
Currently, 42% of the benefits packages offered by small companies include additional benefits beyond the mandatory ones, signaling an effort to meet employee expectations. Among the most common benefits are mental health programs, education subsidies and discounts on quality of life services. This strategy is supported by 43% of HRs, who emphasize the importance of offering benefits that truly impact and make sense for employees.
Competitiveness is also a priority. Almost half (42%) of HR professionals in small companies are concerned about aligning the benefits offered with the market, aiming to attract and retain talent in a scenario of fierce competition. To this end, half of these organizations (50%) intend to moderately or significantly increase the budget allocated to benefits in the coming years.
These figures show that, despite financial constraints, small businesses are willing to invest in the well-being of their employees. Strategic partnerships and scalable solutions, such as digital benefits platforms, have been effective alternatives to expand the offering without compromising available resources.
A notable example is the inclusion of leisure benefits, such as travel vouchers, which allow employees to choose destinations and dates according to their preferences. This type of benefit, in addition to being financially flexible for the company, promotes well-being, reduces stress and strengthens the relationship between the organization and its employees. Research shows that employees who have access to leisure experiences report higher levels of productivity and job satisfaction.