„Data analysis shows that the number of registrations has increased. Compared to the second quarter of last year, 10% more companies were registered, with their total number reaching 6938,“ noted Bigbank’s chief economist Raulis Eamets (Raulis Emets).
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However, according to him, large numbers do not mean that all these companies will immediately start their activities. Moreover, due to the digital environment, company registration has become very simple.
„The total number of companies registered in the second quarter is one of the largest in recent years. The last time more companies were registered in one quarter was at the end of 2021. This probably indicates that the economy has begun to gradually recover, and entrepreneurs’ confidence is growing. The activity of e-residents also has a positive impact: according to estimates, about 20% of new companies were established by them,“ said the economist.
According to him, most companies were established in the IT sector, which accounted for 22% of all newly registered companies. Next comes professional, scientific, and technical activities (15%), half of which are related to main office activities and management consulting. The third largest sector was wholesale and retail trade (13%), followed by construction (8%).
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However, the latest data also shows that the number of company bankruptcies increased by 30% in the comparative period.
„The growth seems significant, but it should be noted that the total number of bankruptcies, compared to the total number of companies, is very small: 47 companies went bankrupt in the second quarter. For comparison, there were only 149 throughout last year. Most bankruptcies were in the trade and construction sectors – 14 and 9 respectively. As you can see, these numbers are very small,“ added R. Eamets.
