Half stopped doing business before the crisis, the other half during the crisis. During
the first four months of this year, less than 20,000 people started doing business. At the same time, almost 46,000 self-employed persons interrupted their business and another 11.5 thousand of them directly cancelled their business licenses. 5.5% of active self-employed people stopped doing business at least for a while. Two-thirds of them interrupted or cancelled their activities before the crisis and one-third in the last two months. For example, among sports, entertainment and recreation operators, almost a tenth of active tradesmen have interrupted or closed their businesses, half of them during the crisis. This follows from the data of
the www.informaceofirmach.cz portal and the analysis of the CRIF company.
More than other industries, spa, massage and solarium operators were also affected by the current crisis, among which 8.6% of active tradesmen interrupted or cancelled their activities by the end of April. The operators of travel agencies are similar, with 8.5% of self-employed people disappearing from the market.
Furthermore, for example, operators of hotels and guesthouses (-7.4%) or hairdressers, among them 7.2% of active tradesmen terminated or interrupted their trade.
"These trades are often run by small business owners, who lost all their sales overnight in March. At the same time, they initially had no idea if they would receive support from the state, or in what amount. In April, when it was already clear what support self-employed people can count on, the number of interrupted and terminated trades decreased significantly, even compared to February this year,
” says Věra Kameníčková, an analyst at CRIF.
Most of the self-employed people who ended their business this year or interrupted it, however, did so in January, when people traditionally interrupt their trade in larger numbers, or in February. In most fields, it is about two thirds of self- employed. For self-employed persons connected with travel agencies and agencies or the mentioned sports activities, it is only half.
"These trades are often run by small business owners, who lost all their sales overnight in March. At the same time, they initially had no idea if they would receive support from the state, or in what amount. In April, when it was already clear what support self-employed people can count on, the number of interrupted and terminated trades decreased significantly, even compared to February this year,
” says Věra Kameníčková, an analyst at CRIF.
Most of the self-employed people who ended their business this year or interrupted it, however, did so in January, when people traditionally interrupt their trade in larger numbers, or in February. In most fields, it is about two thirds of self- employed. For self-employed persons connected with travel agencies and agencies or the mentioned sports activities, it is only half.
MOST SELF-EMPLOYED PEOPLE STOPPED DOING BUSINESS IN THE VYSOČINA REGION; MOST NEW ONES STARTED DOING BUSINESS IN PRAGUE
Within the entire Czech Republic, 5.5% of active entrepreneurs cancelled or interrupted their trade. Within the individual regions, the situation differed rather slightly. While 6.3% of active self-employed persons interrupted or terminated their business in the Vysočina region in the first four months of the year, and 6.1% in the Ústí nad Labem region, 4.8% in the Olomouc and Pardubice regions and 5% in Prague.
In the first four months of the year, 19.5 thousand self-employed persons also started their business, which means that new self-employed persons made up less than 2% of active self-employed persons. New self-employed persons had the highest share in Prague (2.3%) and in the Ústí nad Labem Region (2%), the lowest in theSouth Bohemian Region, the Hradec Králové Region and the Vysočina Region, where they accounted for 1.5% of the total number of active self-employed persons.
THE NUMBER OF ACTIVE TRADES AS A WHOLE HAS NOT CHANGED SIGNIFICANTLY BECAUSE OF THE CRISIS
Although in some fields it was possible to record more significant fluctuations in connection with the current situation, there were no large fluctuations in self-employed persons as a whole. During the first four months of this year, fewer people started doing business than last year or the year before, but at the same time, the number of those who stopped doing business decreased.
"The number of self-employed persons who interrupted their activities increased year-on-year, but most of the increase took place by the first half of March, i.e. before the declaration of a state of emergency. Moreover, for example, the number of entrepreneurs who cancelled their activities was lower in each month of this year than in the previous two years. In the sector of natural persons of entrepreneurs as a whole, no significant changes have taken place so far. As for the
near future, the number of people who start a business can be expected to increase as unemployment increases. At the same time, the number of entrepreneurs who terminate their activities will probably increase, “says Věra Kameníčková.
Source: CRIF spa
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