THE IMPORTANCE OF ADMINISTRATIVE GOVERNANCE AND LEGAL CERTAINTY FOR THE SUSTAINABILITY OF SMALL BUSINESSES IN BRAZIL

Abstract

This article examines how micro and small enterprises play a strategic role in contemporary economic development, especially in developing countries such as Brazil, where they represent the majority of formally established businesses and perform a relevant function in job creation, social inclusion, and the reduction of regional inequalities. Despite their structural importance, a high rate of business mortality is observed, particularly in the early years of operation, revealing weaknesses related to administrative management and compliance with applicable legal norms. In this context, the present article aims to analyze the importance of administrative governance combined with legal certainty as fundamental pillars for the sustainability and longevity of small businesses in Brazil. The research adopts a qualitative methodology, based on a bibliographic review of classical and contemporary works in the fields of Administration and Business Law, as well as a normative analysis of the relevant Brazilian legislation. The results indicate that the adoption of administrative governance practices, such as strategic planning, separation of assets, internal controls, and risk management, associated with the preventive compliance with legal obligations, significantly reduces exposure to financial and legal risks. It is concluded that the integration between administrative governance and legal certainty contributes to the professionalization of management, the strengthening of decision-making processes, and the creation of an environment of predictability and stability, which are essential for the continuity and sustainable growth of small businesses.