Opten: The number of companies in Hungary may drop below half a thousand

Gradual restructuring

In recent years, the gradual tightening of the economic environment – ​​especially in taxation, regulation and energy prices – has had an adverse effect on the survival of companies. The consolidation that began in the late 2010s was temporarily halted by the pandemic, but the delayed market cleansing is now taking place at an accelerating pace. As a result of the amendment to the KATA, inflation and the increase in administrative procedures, three-quarters of businesses are not closing voluntarily, but due to external pressures.

Disappearing micro-enterprises

Over two years, more than 16,000 micro-enterprises with 1–9 employees have disappeared from the market. This has serious consequences for the economic structure, as this group represents the backbone of domestic enterprises. In contrast, the number of companies with more than 10 employees increased by nearly a thousand in the same period. This trend points towards the concentration of the economy and the strengthening of larger players.

Geographical differences

The Opten–CFI (Company Fluctuation Index) was 15.02% nationwide in May. The highest movement was seen in Budapest (21.67%), Borsod-Abaúj-Zemplén and Szabolcs-Szatmár-Bereg counties, while the lowest fluctuation was experienced in the Tolna, Bács-Kiskun and Komárom-Esztergom regions.

A qualitative turnaround or a dangerous decline?

“Behind the decreasing number of companies, a picture of a more responsible, more concentrated economy emerges, but this transition also involves natural losses,” said Csaba Alföldi, company information expert at OPTEN. The key question for the future will be whether the businesses that remain will be able to develop sustainable operations through innovation and adaptation.