Brazil ended 2025 with the highest number of companies in judicial reorganization in history: 2,466 CNPJs (Brazilian company tax IDs) involved in restructuring processes, a 13% increase compared to the previous year, according to Serasa Experian. This data contrasts with the strong pace of entrepreneurship in the country. In 2025 alone, more than 5 million companies were opened, according to the Ministry of Entrepreneurship. Even so, a survey by IBGE (Brazilian Institute of Geography and Statistics) shows that 62.7% of businesses do not survive the first five years of operation and about 20% cease operations before completing one year.
“Most companies focus their efforts on selling more, acquiring customers, and expanding operations. All of this is important, but it doesn't guarantee sustainability. In many cases, growth happens at a faster rate than the business's own management capacity,” says Dema Oliveira, CEO and founder of Goshen Land, a company specializing in business development and expansion.
This diagnosis is reinforced by data from Sebrae, which indicates that 17% of Brazilian entrepreneurs opened their businesses without any prior planning. Among businesses that close, there is also a higher proportion of entrepreneurs who did not invest in training and management development.
According to Oliveira, the first step in reducing risks is to conduct a thorough business diagnosis before seeking expansion. The goal is to identify bottlenecks that limit growth, such as weak cash flow, lack of processes, poorly defined goals, or misaligned teams. He argues that these problems don't disappear as the company grows; on the contrary, they tend to become even more evident.
Another crucial factor is the simultaneous development of leadership and processes. In practice, many companies reach a growth limit because all decisions remain concentrated in the founder. Building leaders capable of assuming responsibilities, coupled with defining performance indicators and structured processes, allows the operation to scale with greater predictability, efficiency, and autonomy.
The expert also highlights the importance of the environment in which the entrepreneur is embedded. Participating in strategic groups and networking with other leaders allows for the exchange of experiences, access to best practices, and accelerated decision-making. In addition to reducing common mistakes in the entrepreneurial journey, this type of connection expands business and growth opportunities.
“Companies that invest in diagnostics, leadership, processes, and business development build a more solid foundation to face periods of instability and sustain long-term growth. A company's survival depends on its ability to structure itself to continue growing without losing efficiency, control, and profitability,” concludes Dema.
