Waves in the company trend – the changing faces of liquidations and company formations

Based on the data of the KSH, the performance of the industry in February was able to increase both compared to the previous year and the previous month, and the retail turnover also showed a favorable picture in February compared to the same period of the previous year. However, the economy has not yet recovered, rather it is characterized by fluctuating performance. Industry registered a decline in January, and the turnover volume of retail trade also decreased in February compared to the previous month, while in January-February this year was stronger than a year ago.

We experienced similarly fluctuating processes in the company trend in March of this year. According to OPTEN data, the number of social enterprises operating in the economy continued to decrease, and this can be considered a process that has lasted for seven months, with the loss of more than 1,100 enterprises. Although the month of February still gave reason for optimism thanks to the high number of company foundings, which exceeded 2,600, this momentum did not continue in March. Only 2,001 new enterprises strengthened the circle of social entrepreneurs, which was 30% less than the same period of the previous year.

“In addition to maintaining optimism, we should think about the extent to which we should be pessimistic. Although there is no reason to be overly optimistic, there are positive signs emerging in the processes of March. For example, the number of business closures has been decreasing continuously for three months, albeit slightly, and is 20% less compared to the previous year. In addition, the number of new liquidation procedures in March decreased by a third compared to February, and was only 60% of the same period of the previous year.”

– said Csaba Alföldi, OPTEN’s c