Less entrepreneurship, more difference – this is how the number of companies changed by county between 2022 and 2024

The year 2022 marked a kind of peak for the domestic business sector after the epidemic, when the most active companies were present, although the reorganization that would become visible the following year was already evident. The decline in inflation and consumption, the difficulties of financing, and the uncertainties surrounding EU funding sources all contributed to the fact that by 2024 there would not only be fewer operating businesses, but also fewer new ones than before.

According to OPTEN data, in two years, the number of partnerships in Hungary decreased by more than 23 thousand. While the number of active companies approached 529 thousand at the end of 2022, by 2024 it had fallen below 506 thousand, and this year’s figures also show a further decline. The decline was nationwide, but the underlying processes show a different face in each county. In some places, economic transformation dictated the pace, in others, caution due to the outlook, but there were also regions where the lack of internal reserves made its impact felt.

Who suffered the most?

The largest decrease in the number of companies in absolute terms was recorded in Budapest, with more than 14,800 fewer companies in two years. This is not surprising in itself, since entrepreneurial activity is highest in the capital, but the extent of the decline is still striking. The economic shocks – inflation, rising credit interest rates, wage pressure – mostly affected the service sectors, and these are primarily concentrated in Budapest.

Nearly one in seven of the companies still operating in 2022 have now disappeared, and only one in nine of the current Budapest businesses were newly founded in the past three years. In the field of trade, more than 3,200 businesses ceased to exist, while the number of new establishments could not offset this. The construction industry shows an even more dramatic picture, with the number of active businesses decreasing by around 1,500 in two years. Businesses engaged in professional, scientific and technical activities also suffered a significant decline, with more than 3,200 closures and new establishments barely keeping pace.

In Komárom-Esztergom County, the number of operating businesses decreased by nearly 5 percent compared to 2022. The industrial structure here is strongly export-oriented, so it reacted particularly sensitively to disruptions in the global supply chain and fluctuations in energy prices. In the manufacturing industry, nearly 90 companies closed down, while the number of new establishments did not reach 75. In the construction industry, more than a hundred businesses disappeared. There was also a 10% decline in the programming and IT sectors.