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Survival of Hungarian start-ups deteriorates

Ecosystem

The survival rate of start-up Hungarian companies has deteriorated in the past year, with less than 70% of companies reaching the age of 5, and 46% of businesses reaching the age of 10, the Opten company information service told state news agency MTI.

Photo by cybrain / Shutterstock.com

According to their announcement, the survival rate of young businesses has gradually declined over the past 15 years, and this trend has not stopped in the past year either, with both the 5-year and 10-year survival rates falling by more than 2 percentage points in one year.

According to Richard Pertics, an analyst at Opten, the low life expectancy of companies is not good for the stability of the economy, even though tens of thousands of new businesses are created every year, if only a few of them get to long-term, stable operation.

The number of start-ups has increased in the last 5 years, with more than 29,000 new companies registered in the country in 2019. Data, on the other hand, show that a declining percentage of new businesses can successfully cope with their “youth” years.

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