No. of new companies grows faster in CR in H1 – analysis

​As many as 12,443 companies were set up in the Czech Republic in the first half of this year and 2,943 companies were dissolved and the ratio between the new and dissolved companies started to grow again after three years, according to an analysis of firm CRIF – Czech Credit Bureau.
 

​However, the ratio has not yet reached the levels seen before the economic crisis. Among regions, Prague with almost seven new companies per one dissolved did the best, shows the analysis based on data from portal with information about companies cribis.cz.

There were 4.2 new companies per one dissolved in the Czech Republic in H1 2013, a bit more than last year when there were only 3.9 new companies per one dissolved. The number is still 20 percent lower than in 2010. The data for H1 2013 signal that a growth has come after three years of fall.

"Despite unfavourable conditions, construction did the best in the first half of this year as over 6 companies were set up per every one dissolved. The sectors of professional, scientific and technical activities showed similar results," said CRIF – CCB analytic department head Vera Kamenickova.

The worst situation was in transport which has one of the lowest ratios between the set-up and dissolved companies. The ratio even decreased in the first half of this year. Per two new transport companies, there was one dissolved.

The number of companies older than 15 years that are being wound down keeps growing. In 2009, these companies contributed only 30 percent to the total number of the dissolved companies. In the first half of this year, they made up over a half.

The biggest decrease was in the number of companies which at the time of their closing were aged between 11 and 15. The share of companies which were closed six to ten years after setup also slightly decreased.

Region Stredocesky registered the worst ratio between the set-up and dissolved companies. Regions Moravskoslezsky and Pardubicky had the second best ratio, right after Prague.

The ratio of new companies per one dissolved

Source: cribis.cz, CRIF – Czech Credit Bureau
 
Source: CTK, 7. 10. 2013, 17:09, Section CTK: cce bns, Author: fs