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.

ADVERTISEMENT

Vechicle sales at AutoWallis rocket in Q1 Automotive

Vechicle sales at AutoWallis rocket in Q1

Sándor Csányi re-elected chairman-CEO of OTP Bank Banking

Sándor Csányi re-elected chairman-CEO of OTP Bank

HUF 5 tln earmarked for economic recovery in 2021-22 Government

HUF 5 tln earmarked for economic recovery in 2021-22

Allee preparing for maintaining customer engagement with vir... In Budapest

Allee preparing for maintaining customer engagement with vir...

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.