A record number of defunct companies in the Czech Republic is expected in 2020, with more than 16,000 of them expected to go under. The Covid-19 pandemic has also been reflected in the number of new start-ups, with 27,000 of them the worst result in five to six years.
According to CRIF analyst Věra Kameníčková, the number of defunct companies has been growing for a long time. By 2016, the number of defunct companies remained below 10,000, and last year it exceeded 15,000 for the first time.
The number of newly established companies has also been declining over a longer time. It reached its peak in 2017 and has been gradually declining since then.
“The trend in the area of newly established companies will not change this year, but the decline will be faster than in previous years. Compared to 2019, a tenth fewer companies will be established and, compared to 2017, even 17 percent less,” said Kameníčková.
According to CRIF statistics, 2,261 companies were established in November this year and 1,334 companies ceased to exist. Within eleven months, 24,500 companies were formed and 14,500 stopped operations.
In November, most trading companies were established in Prague (1,087), in the South Moravian region (266), in the Moravian-Silesian region, and in the Central Bohemian region (both 175).
On the other hand, the fewest companies were established in Karlovy Vary region (29), in the Vysočina region, and in the Pardubice region (50 each). Most of them also disappeared in Prague (653), in South Moravia (120), and in Central Bohemia (106).
As for the main sectors, most were real estate companies (433), trade (278), and manufacturing ventures (217), which were established in November. Most companies disappeared in trade (486), real estate management (251), and in professional, scientific and technical activities (125).
Title image: People enter a store in Prague, Czech Republic, Thursday, Dec. 3, 2020. A sign of normalcy has returned to the Czech Republic ahead of the Christmas period after the government eased some of its most restrictive measures imposed to contain the recent massive surge of coronavirus infections. On Thursday all stores, shopping malls, restaurants, bars and hotels were allowed to reopen. (AP Photo/Petr David Josek)
