Boom of entrepreneurial openings in 2022, but also of closures
During last year, 2022, a total of 77.016 people started a business with a license in the Czech Republic, 10.604 more than in 2021. This is the highest number of new openings since 2011. This is indicated by CRIF (Czech Credit Bureau). However, in 2022, just as many people decided to cease their activities, more than 78.357 people: 36.000 more than in 2021. This results in 1.341 fewer self-employed persons. The number of women who decided to leave the business increased by 120% year-on-year, while in men it was 69%.
Analyst Věra Kameníčková argues that this is because sole businesses, unlike companies, secure their businesses with their personal entire assets, so they prefer to cease business upon bankruptcy. And again, many entrepreneurs have probably exhausted all their reserves and decided to close the business, although the economic situation is not getting worse.
New entrepreneurs increased in all sectors of the economy, except for property management (minus 8%) and agriculture and forestry (minus 2%). The largest growth occurred in the construction sector (plus 37%). The number of new self-employed workers increased in all regions of the Czech Republic, with Prague and Karlovy Vary recording the largest increase, by 23%. At the same time, the number of deceased entrepreneurs also increased by 86% year-on-year.
The graph below shows the trend of new openings (vznik, blue line) and closures (zanik, orange line) from 2017 to the end of 2022:
Sources: https://www.informaceofirmach.cz/ ; https://www.camic.cz/it/ ; https://www.crif.cz/
Sources of images: https://storyset.com/
