Thursday, November 15, 2012



IWS Documented News Service


Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau


Instituto Brasileiro de Geografia e Estatistica (IBGE)




In 2010, there were 33.320 high-growth enterprises, which are those that had the number of the employees increased in 20%, within a period of three years.  They employed 5 million persons and paid R$ 88 billion in wages and other remuneration. 32,863 of these enterprises were classified as organic growth enterprises, which means that the rise in the number of employed persons  occurred through employment creation rather than fusions with existing firms.


The organic growth enterprises represented 1.5% of the total of enterprises with at least one salaried person and were responsible for generating more than half (50.3%) of the new salaried job posts in Brazil from 2007 to 2010. Of the total of 5.4 million new jobs in this period, 2.7 million were created by high-growth enterprises.


The organic growth enterprises, in 2010, employed 4.3 million salaried persons and paid R$ 67 billion in wages and other remuneration. However, the average wages paid were lower (2.4 minimum wages) than those of the active enterprises with salaried employees (2.9 minimum wages) and the staff was constituted by 8.8% fewer women and 28.0% fewer persons with a university degree. Even though their average value added (R$ 6.5 million) was 115.2% greater than than that of the active enterprises with ten or more employees (R$ 3.1 million), their average productivity at work was 25.5% lower. (R$ 46.0 million against R$ 61.8 million per employed persons).


These data are registered by the study Statistics of Entrepreneurship 2010, which results from the partnership between IBGE and Endeavor Brazil. The publication analyses the performance of the enterprises, the jobs they generate and indicators such as value added and productivity. In 2010, the focus was the organic high-growth enterprises (EAC).  


The five economic activities responsible for the highest employment creations in the organic EAC were: manufacturing industry (568.8 thousand);managing activities and complementary services (553.7 thousand); construction (551.0 thousand); trade; repair of motor vehicles and motorcycles (420.6 thousand); and transportation, storage and mail (204.1 thousand). The average age of the organic EAC, in 2010, was 13.6 years old.


In addition, around 70% of the organic EAC concentrated in the Southeast and South regions in 2010. The Southeast also held the largest percentage of employees (52.9%), but the Northeast came in the second position, employing 19.7% of the persons, followed by the South, with 14.9%.  The Northeast also recorded the highest average of employed persons by local unit (77), followed by the Southeast (69), the North (64), the Central-West (58) and the South (48).


The survey also brings information on the so-called gazelle enterprises, younger high-growth enterprises. Among them, 3,722 enterprises were up to five years old (G5) and 12,328, among five and eight years old (G8).


The complete publication can be accessed at




This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.


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