In the first half of 2014, fewer one-man businesses were closed down. In the preceding three years, the number of close-downs had risen. The number of starting one-man businesses increased for the third year in a row, by more than 4 thousand in 2014. The majority of start-ups and close-downs concerned businesses run by self-employed without personnel. Most of them were active in the sectors construction and management consultancy.
One-man businesses, start-ups and close-downs, first six months
Fewer shops closed down
The number of close-downs in the retail sector was reduced substantially by more than 17 percent. The number of close-downs of traditional and online shops was reduced. The retail trade sector seems to benefit from the growing consumer confidence and consumers’ willingness-to-buy. The sector has shown turnover growth for a quite some time now.
The number close-downs of one-man businesses engaged in specialised building activities was reduced by more than 10 percent. These self-employed benefitted from the reduced VAT rate for residential repair and renovation projects. The improved situation on the housing market also plays a part in this respect. The number of close-downs of one-man business in the construction sector remained unchanged.
Increase in number of new one-man businesses slows down
Although the number of newly established businesses rose during the first six months of this year relative to the same period last year, the increase was less substantial than in the preceding years. In recent years, the share of new one-man business established by unemployed has risen.
After unemployment reached a stable level in 2014, the need to start up a one-man business appears less pressing. This year too, management consultancies are the most popular type of newly established one-man businesses.
Number of bankruptcies also down
The number of close-downs of one-man business fell in the first six months of 2014. The number of one-man businesses declared bankrupt also declined, by 10 percent. The overall number of bankruptcies fell by 20 percent.
Bankruptcies by type of business