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One in every five small-sized firms in Brazil's wealthiest state plans to dismiss staff in coming months, a survey showed on Monday, as scarce working capital loans are making it harder for managers to weather an economic slowdown.
According to Sindicato da Micro e Pequena Indústria do Estado de São Paulo, an industry group that represents small companies in the state, 34 percent of the managers surveyed have had to take on costlier credit lines to make up for fewer working capital loans. The survey was made between Aug. 11 and Aug. 28, with 313 firms. The number of small firms that contracted overdraft loans rose to 14 percent of the sample in August, compared with 11 percent a year earlier.
Editing by Lisa Shumaker