Registration of new business ventures drops 7.6pc as investors hold back
The data reflects a challenging business environment in a year marked by higher taxes and rising lending rates.
New business registrations in the country declined by 7.6 per cent in the year ending December, highlighting a tough economic climate that deterred many from starting new ventures.
Data from the Business Registration Service (BRS) shows that 130,527 new entities were registered, down from 141,193 in 2023.
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This reversed the growth seen in the previous year when registrations had increased by 2.9 per cent.
The drop was mainly driven by a 15.3 per cent decline in business name registrations, which fell from 83,458 in 2023 to 70,693 last year.
Business names mostly represent sole proprietorships, typically owned and run by individuals.
Other registered entities include private companies, public companies, foreign companies, companies limited by guarantee, limited liability partnerships, and limited partnerships.
Tough business environment
The data reflects a challenging business environment in a year marked by higher taxes and rising lending rates.
It also shows that 1,845 entities were delisted from the registry, following 1,861 delistings recorded in 2023.
Several economists have attributed the decline to negative investor sentiment and high borrowing costs.
They pointed out that many investors opted for government securities, which offered attractive returns, instead of launching businesses.
Despite the overall decline, private company registrations grew slightly by 3.2 per cent to 58,193, up from 56,376 in 2023.
Foreign company registrations also saw a 4.4 per cent increase, reaching 189 from 181 the previous year.
Companies limited by guarantee rose by 327 to reach 833, while new public companies and limited liability partnerships declined by 26 and 68 to stand at 64 and 514, respectively.
BRS records also show that 22 companies went into administration last year, underscoring the difficulties businesses faced in staying afloat amid high taxes and expensive credit.
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