The number of company bankruptcies has dropped
Recently, fewer and fewer entrepreneurs are declaring bankruptcy. However, the wave of bankruptcies is still ahead.
Only 69 business entities went bankrupt in the third quarter of this year. This is 12.7 percent less than a year ago, according to data from the Central Statistical Office (CSO). In contrast, 80 businesses went bankrupt in the second quarter of this year.
At that, the number of bankruptcies increased in services compared to last year. On the other hand, it fell significantly in trade, motor vehicle repair, accommodation and catering, construction, industry, transportation and warehousing.
As many as 96.6 percent of entities declared bankrupt were limited liability companies, and 14.5 percent were limited partnerships.
Although the data shows that companies are going bankrupt less and less, it should be remembered that the business environment is getting tougher. Costs are rising due to more expensive energy, fuels, raw materials, services, labor and rising interest rates. In addition, the deceleration in retail sales and industry is becoming more pronounced. Therefore, an increase in bankruptcies may be yet to come. After all, it takes a long time from the difficult situation of a company to the moment it declares bankruptcy.
At the same time, CSO data show that more companies registered in the third quarter than a quarter earlier. Among the more than 93,000 registrations, the largest number appeared in the information and communications, trade and vehicle repair industries.
