More companies open in Czechia, but growth is slowing

Published: 24.04.2023 Related countries:  Sweden Sweden

Real estate and commerce were among the fastest-growing sectors, and trade was the fastest disappearing. Prague led in the number of new companies and closures.

A new analysis shows that 13,900 companies were formed in Czechia last year. A report by the Czech Credit Bureau (CRIF) found that 1,500 fewer new businesses opened last year than in 2021 but 2,800 more than in 2020.

Uncertain economic conditions drove last year's drop, says CRIF analyst Věra Kameníčková. CRIF predicts that the cooling trend will continue into next year due to rising energy costs.<br/> Prague leads in both new companies and closures.

The largest number of new firms (13,950) was established in Prague. South Moravia had 3,445, and Moravia-Silesia had 2,186.

Real estate and commerce lead growth

Real estate management saw the fastest growth in 2022, with 5,185 new firms established. Commerce followed (4,663) and manufacturing (3,319) ranked third.

The trades saw the greatest number of closures. Some 4,546 ceased operations in 2022. In real estate management, 3,028 firms closed.

While the number of new companies to form in the past few years was affected by the Covid-19 pandemic, that seems to have abated for now.

In 2023, companies will continue to face uncertainty from rising energy prices and inflation. This could make some entrepreneurs wary of launching new ventures and lead to closures. The net growth of new companies is expected to remain slow.

Author: Prepared by the team from the foreign office CzechTrade Scandinavia.
Source: Staff