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Companies Survival Probability Improves but Still Very Low

MTI-Hungary Today 2019.08.12.

The five-year survival ratio of business entities, looking at which ones were active five years after their establishment, rose to 40 percent in 2017, up from 37 percent in 2016, data from the Central Statistical Office (KSH) shows.

Before the 2008 crisis the survival ratio was above 43 percent then it dropped quickly in the following years. The ratio stopped falling in 2013 but it only started to meaningfully improve in 2015.

Out of 31,998 companies founded in 2012, 43.3 percent were active in 2017 and out of the 24,678 sole proprietors 34.6 percent were still in business five years later.

Businesses in the healthcare and social services segment had a 57.5 percent survival ratio. Industrial, research, information and communication businesses also had an above the average 45 percent survival ratio.

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Financial and insurance entities had the lowest survival rate at 13 percent five years into their lifespan.

Featured photo illustration by pixabay.com