Saturday, 15 March 2025
In 2024, a total of 30,910 new companies were established in the Czech Republic, marking an increase of 1,934 compared to the previous year. At the same time, 17,099 companies ceased operations, representing a year-on-year rise of 1,004. As a result, the net increase in businesses amounted to 13,811, nearly a thousand more than in 2023.
According to Věra Kameníčková, an analyst at CRIF – Czech Credit Bureau, the number of newly established companies grew by 7% year-on-year, reaching the highest levels since 2019. However, with the rise in company formations, the number of closures also increased, with an average of 2,576 companies being created each month and a net monthly gain of 1,151 companies. In December 2024 alone, 2,827 companies were founded, while 1,653 ceased operations.
The growth rate in new companies has slowed in recent years. In 2024, 18 new businesses were created for every 10 closures, the same ratio as in 2023 but lower than in previous years when the figures stood at 20 and 21, respectively. This slowdown has been influenced by weak economic growth, high energy prices, rising labor costs, and subdued demand from both households and businesses, leading to a cautious approach and higher savings. Despite this, company deposits still exceed their bank loans, both of which grew by 7% year-on-year.
Prague continues to dominate the market, accounting for more than half of the new businesses established in 2024, with 15,782 companies. The South Moravian Region followed with 3,708 new businesses, while the Moravian-Silesian Region recorded 2,190. In contrast, the lowest numbers were seen in the Karlovy Vary Region (380), the Vysočina Region (537), and the Liberec Region (573). Prague also led in business closures, with 9,467 companies shutting down, followed by the South Moravian Region (1,723) and the Moravian-Silesian Region (1,106).
Although most regions experienced growth, the Ústí Region saw a decline, with only 9 new companies per 10 closures. The fastest growth was recorded in the Highlands, with 30 new businesses per 10 defunct ones, followed by the South Bohemian Region with 28, and the Zlín and Olomouc regions, each with 27. The Liberec and Karlovy Vary regions showed only modest growth.
The trade sector saw the highest number of new companies, with 3,802 added in 2024. Real estate followed closely with 3,643 new businesses, while the manufacturing sector welcomed 3,110. However, the trade sector also experienced the highest number of closures, with 5,077 companies ceasing operations, followed by real estate (3,439) and professional, scientific, and technical activities (2,466). Overall, the trade sector saw the largest decline, with only 7 new businesses created for every 10 closures.
The construction industry contributed the most to business growth, adding 1,762 companies, followed by manufacturing (1,716), information and communication (1,589), and accommodation and catering (1,166). Despite higher bankruptcy rates in construction, manufacturing, and hospitality, the number of new companies in these sectors significantly exceeded closures.
The fastest-growing sector was personal services, such as hairdressing, beauty, and laundry, with 72 new businesses for every 10 closures. Education followed, with 55 new businesses per 10 closures, while energy production and distribution saw a ratio of 52 to 10.
Half of the companies that shut down in 2024 had been in operation for 16 years or more, having started before 2008. About 20% had been on the market for 11 to 15 years, and 22% for 6 to 10 years, while only 8% of the defunct businesses had been operating for five years or less, a trend that has remained relatively stable over time.
Source: Czech Credit Bureau (CRIF)
