Title: Micro and small business in Brazil: asymmetries and financial fragility

Authors: Maria Alejandra Caporale Madi

Addresses: Rua Sergipe, 627-apto 144, São Paulo – SP, 01243-001, Brazil

Abstract: Micro and small enterprises (MSEs) in Brazilian industrial manufacturing reveal a low capacity for innovation in products and management, poor performance in competitive environments and weak international orientation. Besides, the access to credit is restricted. In the aftermath of the global crisis, new flows of credit benefited bigger corporations in spite of the micro and small firms. In addition to their financial fragility, the strength of the domestic currency (real) enlarged the difficulties for successful entrepreneurs in industrial manufacturing. As a result of the competition with Chinese's products, small firms recorded a fall both in the domestic market share and in the volume of exports. In this setting, new investments under the management of private-equity funds have turned out to threaten the survival conditions of firms in the MSE sector. Considering this background, our attempt is to highlight the major challenges regarding management, innovation and financial asymmetries.

Keywords: micro enterprises; small firms; MSEs; innovation; financial asymmetries; 2008 global crisis; Brazil; industrial manufacturing; firm performance; international orientation; financial crisis; entrepreneurship; market share; export volume; private equity funds.

DOI: 10.1504/IJGSB.2013.054889

International Journal of Globalisation and Small Business, 2013 Vol.5 No.3, pp.136 - 147

Received: 05 Sep 2012
Accepted: 27 Sep 2012

Published online: 27 Dec 2013 *

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