After a year with a number of bleak results, 2013 brought a renewed hope to the business industry with a positive balance in terms of the numbers of companies opening and closing down – over two companies opened for every company that shut down.
According to a business barometer by Informa D&B, over 35,000 companies were created last year, which represents a 12.8% increase compared to 2012.
Another positive factor lies in the number of companies that closed down in 2013 – 14.504. The number is 20% below the values registered the year prior – 18.122.
Last year was also the first year since 2009 in which the number of insolvencies dropped compared to the previous year. In 2013, they fell 7.6%.
“If we combine the rise of enterprise creation with the reduction of shutdowns, we can see that we have achieved the best rate of openings for each shutdown since 2009,” said the general director of Informa G&B, Teresa Menezes.
“What this means is that 2.4 companies open for every company that closes down, representing a 41% increase compared to 2012,” she added.
Further data shows that out of the total amount of companies that were created last year, over 16.000 of them were set up with under €5.000. The average amount of money invested among these smaller enterprises was €1.008.
The services, retail, housing and restaurant sectors accounted for over 23.000 of the total amount of companies that opened doors in 2013. And out of that total amount, approximately 34% are based in the north of Portugal.
However, the north is also where most companies faced insolvency – 41% of all insolvencies were registered in this part of the country.
Although the drop in company shutdowns was common across Portugal and in all areas of business, it was most noticeable in the services, construction, retail and manufacturing sectors.
The business barometer also showed that approximately 85% of shutdowns took place in businesses that were under 20 years old, while the remaining 15% took place in those considered ‘mature’ – over 20 years old.
