Turn 2024 – Rise of active individual entrepreneurs

By: Trademagazin Date: 2025. 01. 15. 11:27

The number of sole proprietorships grew dynamically in 2024, while the decline in partnerships continued. There are currently more than 1.1 million sole proprietorships and partnerships in Hungary, and the proportion of sole proprietorships is significant. The growth in the number of sole proprietorships is particularly strong in rural areas, while partnerships mainly dominate the economy of Budapest and Pest counties.

Hungary remains a country of businesses, but the demand for lower-cost solutions is increasing due to the transformation of the economic environment. According to OPTEN data, the number of partnerships decreased in 2024, while the number of sole proprietorships expanded dynamically.

In recent years, the number of sole proprietorships and partnerships has exceeded one million, even in 2022, when changes to the KATA regulation caused a significant reorganization. Currently, there are more than 1.1 million businesses operating in this area, which is 60 thousand more than at the end of 2020.

The popularity of sole proprietorships is due to their easy establishment and flexible operation. There is no share capital requirement, registration with the company court, and terminating or suspending them is much easier than in the case of partnerships. In the tight labor market environment, many people see sole proprietorships as a way out, as they offer a flexible opportunity to try their hand at their own profession or even a completely new field. This year, more than one hundred thousand inactive sole proprietorships have been registered almost every month, while the number of active sole proprietorships already exceeds that of partnerships.