INNOVATION FACTORS TO SURVIVAL OF MICRO AND SMALL COMPANIES IN BRAZIL

Abstract

The number of micro and small brazilian enterprises has already outreached 5,5 million of establishments, which correspond to 20% of the gross national product- GNP, 1,4% of the exportations, 43% of the income and 60% of formal employment. The percentage of companies that survive, for at least 2 years, changed from 50,6%, in 2002, to 78% ,in 2005, in other words, a raise of 27,4%. The current article has as a goal to comprehend and analyse the reasons that lead to the failure or to the success of the MSEs, especially those with up to five years of constitution. For that, the article has been structured in four phases. In the first one, a description of the MSEs universe in Brazil was realized. In the second phase a literature’s review about planning, decision-taking and innovation of the MSEs. In the third phase, proceeded a quality nature research, descriptive and exploring, and the data was obtained through a bibliographic and documentary review. In the fourth and last phase, the study’s results are presented. The main result indicate that the entrepreneurs are innovating in themanagement process. They are more aware of questions such as planning, financial analysis and qualities of internal staffs. Concerning the deciding process, it comes up as one of the least important areas, with around 8% of the answers. As possible contributions, the work understands that the benefits that imply the companie’s success for the society, through the significant business amount that produce, justify the necessity of studies seeking contribute to the consolidation of the same organizations. Keywords: Decision-taking. Family business.