2023 became the year of negative records in the company trend

By: Trademagazin Date: 2024. 01. 05. 11:56

Negative processes in the company trend in 2023. There are 12.2 thousand fewer social enterprises in the economy. The fewest annual company foundings in the past six years – 25.7 thousand. Record high discontinuations – 37.9 thousand units. The high number of new company court proceedings may lead to stagnation in 2024. In 2023, company closures and liquidations increased both globally and in Hungary.

According to international experts, high interest rates and the reduction of public subsidies after Covid led to the disappearance of zombie companies. According to OPTEN data, the number of enterprises in Hungary decreased by 12,200 in 2023, which is 2.4% of the number of social entrepreneurs. The downsizing of state bailouts and adapting to economic changes were a major challenge for businesses. In the company trend, company closures that were missed or postponed during the epidemic mostly affected the first half of 2023. This is clearly shown by the fact that until August, the decrease in the number of companies – a total of nearly 10,000 – was the determining factor. Although there was a pause in August – there were 60 more companies than there were – but after that the decrease continued, exceeding 12,000 on an annual basis.