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Czechs may be losing entrepreneurial appetite, 2019 data suggests

 
photo:  (radio.cz)
 

During the first half of 2019, the Czech Republic registered a three year low in the amount of new companies being set up, data from the website Bisnode shows. A record amount of businesses, 7964, was also shut-down during the same measured period. Overall, the number of companies registered in the country grew to just under 450,000.

 

According to Bisnode, last year’s record number of companies that ceased to exist will likely be surpassed in 2019.

Currently there are a total of 473,335 limited companies in the Czech Republic, while the number of joint-stock companies lies at 26,476.

Bisnode data shows that the number of limited companies being set up in the country was on a steadily growing trajectory until 2017, when it peaked at 31,204. However, growth registered a slight decline in 2018.

Currently, numbers for the first half of this year, 15,021, suggest that the growth in 2019 might be just under that of the previous year. The same goes for joint-stock companies.

One of Bisnode’s analysts, Petra Štěpánová, told the Czech news agency that out of every two new businesses, one is shut down. She believes that this is a phenomenon connected to a “cleansing” of the Czech market, where companies that have not been active enough, or were unable to compete are forced to close.

 
 
Autor: Český rozhlas Radio Praha
 
Datum: 18.07.2019
 
 
 

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