Debts consume 30% of small businesses cash – 05/24/2023 – Panel SA

More than half of small and medium-sized entrepreneurs operate with 30% of their cash committed to pay debts or interest on overdue installments.

The situation is worse for microentrepreneurs. Six out of ten claim to commit more than 30% of revenues to financial expenses.

This is what the Pulso dos Pequenos Negócios survey shows, carried out by Sebrae in partnership with the IBGE.

Faced with this scenario, small business owners are fleeing new loans from banks — 73% said they had not sought credit in the market.

The number is five percentage points higher than that of the first edition of the survey, carried out in August last year.

“When the Central Bank maintains the highest interest rates in the world, it creates an obstacle for entrepreneurs. This goes against any sensible growth policy. It is perverse, especially for entrepreneurs”, says the president of Sebrae, Décio Lima.

Another problem captured by the survey was the refusal of banks to new loans due to the risk of default.

The survey indicates that only 4 out of 10 small business owners who applied for credit in the market got a positive response.

With Diego Felix

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