The esult has not yet offset losses from previous years, says union
The Activity Indicator of the Micro and Small Industry of São Paulo, released last Friday (17), shows that the sector underwent a year of stability in 2019. The survey, based on the evaluation of businessmen, was commissioned to Instituto Data Folha by the Micro and Small Industry Union (Simpi).
The satisfaction index ended the year at 108 points, the best result since 2014, when it scored 112 points. “Even with the improvement in the index this year, it was still not possible to compensate for the losses of previous years”, stressed Simpi.
As for employment in small industries, the indicator closed last year with 99 points, driven by the increase of 103 points, due to the end-of-year hiring. When the index is above 100 points it means that the balance of jobs is positive, with more hires than layoffs. Below 100 points, the balance is negative.
The annual average has been negative since 2014, with the worst result in 2016, when it was 85 points.
A significant part (45%) of micro and small industries closed December with insufficient working capital. As a result, 21% of entrepreneurs used overdraft (a type of credit that has one of the highest interest rates in the market) to maintain their activities, and 6% had to resort to personal loans.
For the president of Simpi, Joseph Couri, if there is no improvement in the scenario in 2020, small industries will accumulate five years of losses. “The balance sheet for the 2019 financial year indicates the size of the challenges to be overcome and overcome in 2020, under penalty of having lost five consecutive years,” he said.
Source: Agência Brasil
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