The Economic Bankruptcy of the Industries in Mato Grosso, Brazil

Abstract

Data from the Commercial Registry of the Mato Grosso State (JUCEMAT) indicate that the number of bankrupted industries exceeded 16 thousand between 2006 and 2016. This is a high number, to the point of questioning which particularities are related with the economic bankruptcy in the State. The objective of this study is precisely to analyse the profile of these industries that closed their activities in Mato Grosso, considering the estimated survival rate for the extraction and transformation segments. Also, based on the underlying indicators of factor analysis, the crucial factors for the economic bankruptcy of micro and small enterprises in the state are delineated. The main results point to the generalized consequences arising from the main economic crises, with more aggressive effects for the microenterprises of sand, gravel, and cobble extraction. Aggravated problems included also the food and logging industries, the main activities of the local economy, with more pronounced impacts in the South, Southeast, North and Central-North regions of Mato Grosso. The survival rate declined considerably between 2006 and 2008 and, despite recovery in the following period, it has not yet recovered its best performance. In the case of micro and small transformation industries, the results point to a group with limited managerial capacity and lack of strategic planning before the execution of the main stages of production and commercialization.