Companies with one owner already prevail in CR

The number of companies with a sole owner keeps growing in the Czech Republic and while in 2005 their share stood at 46 percent, in 2010 it was 50 percent and this year 57 percent, according to an analysis of data from portal www.informaceofirmach.cz of company CRIF.
 

On the other hand, the share of companies with two or more owners decreases.

Bankruptcy rate is the highest by companies with one owner (1.98 percent), while companies with more than two owners have the lowest rate (1.26 percent). Bankruptcy rate of companies with two owners stands at 1.46 percent.

"Decision making of one owner is simpler and faster, there is no need to look for compromises. One owner controls everything and does not have to rely on others," said CRIF - Czech Credit Bureau analyst Vera Kamenickova.

"Decision making of more people is usually more complicated, it demands patience and ability to listen to others, which are qualities that evidently many people do not have," she added.

Companies with a sole owner mostly have less than 20 employees (93 percent). The share of small firms is lower among companies with more than two owners (88 percent).

Half of companies with two owners are active on the market for more than ten years, while only two fifths of companies with a sole owners are active for such a long time.

Companies with just one owner are thus often younger and at the same time show the most frequent staff changes.

Half of companies with more than two owners do not publish their statement of accounts at all. The situation is a bit better by the remaining two categories as 45 percent of companies with one owner and 43 percent of companies with two owners do not make public their statement of accounts.

Source: CTK, 13. 8. 2015, Section CTK: cce bns, Author: fs