CR's self-employed numbers grow at slowest pace in 4 yrs in 2012
The number of self-employed persons in the Czech Republic increased by around 20,000 last year, the slowest growth in four years and a drop of 40 percent compared to the year 2009, said an analysis of the company CRIF - Czech Credit Bureau.
The self-employed mostly wind up their business after 15 and more years of business activity, according to the analysis.
Data of the Register of Companies show that 23,000 companies were established and 5,800 ceased to exist in 2012.
"The number of businesses that cease to exist after more than 15 years is steeply rising, that is firms well established in the market," said Vera Kamenickova of CRIF - Czech Credit Bureau.
"Liquidation of firms with a long history is a result of a longer economic stagnation in recent years," she added.
Firms that wound up their business made up 27 percent of the newly-set up entities last year, while the number of self-employed persons who ended up in liquidation accounted for 69 percent of the new ones.
The absolute number of the self-employed is around three times higher than the number of legal entities but over the past four years the increase in the two groups' numbers is coming closer to one another.
Almost a half of companies, set up in 2012, are headquartered in Prague. The Czech capital also ranks first in terms of wound-up businesses, with a one-third share.
As for the self-employed, Prague reported the biggest increase in their numbers, 15 percent, and also saw the highest amount of those who wound up their business.
Branches with the lowest increase over the past four years included manufacturing industry, construction, transport and real estate services. Self-employed numbers in transport have fallen for the fourth consecutive year.
One in two companies that ceased to exist in 2012 was doing business for more than 15 years.
The share of older companies in liquidation has risen over the past three years and so has the share of liquidated companies that were doing business for less than five years.
On the other hand, the share of companies that existed for 10 to 15 years at the time of liquidation has decreased, Kamenickova said.