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Companiesʼ survival chances improving - says KSH

Analysis

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

Before the 2008 crisis, the survival ratio was above 43%, after which it dropped quickly over the next few years. The ratio stopped falling in 2013, but only started to meaningfully improve in 2015, noted state news agency MTI in summarizing the KSH data.

Of 31,998 companies founded in 2012, some 43.3% were still active in 2017, while of the 24,678 sole proprietors, 34.6% were still in business five years later.

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

Financial and insurance entities had the lowest survival ratio, at just 13% five years into their lifespan. In this category, the share of functional businesses was lower even after one year of their establishment. 

Regional differences were slight, but a county-level breakdown showed that the survival ratio was as high as 44.9% in Vas County and 43.1% in Győr-Moson-Sopron County, both in the northwest of the country.

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