Just 4.8 per cent of enterprises founded in Bulgaria in 2010 were still in business in 2015, according to a report on the lifespan of Bulgarian businesses released by the National Statistical Institute (NSI) on July 31.
Going by the figures, it seems that in 2010, the best bet was starting a business in the category “electricity, gas, steam and air conditioning supply”, though even there, the figures are hardly impressive. Those that survived the five-year period up to 2015 added up to just 10.5 per cent.
At the other extreme, the lowest survival rate among Bulgarian businesses founded in 2010 was in the mining and quarrying sector, a mere three per cent.
The NSI said that among businesses started in 2014 and still around in 2015, a total of 90 572 people still had their jobs.
The best performer in this one-year period was the “wholesale and retail trade, repair of motor vehicles and motorcycles sector”, at 37.1 per cent, followed by manufacturing, 15.4 per cent, and the accommodation and food business, 11.6 per cent.
The NSI said that “data on dead enterprises in 2014 are preliminary due to the specific methodology and definition”.
In 2014, the number of dead enterprises was 34 518 or about 10.4 per cent of the total number of active enterprises during the year.
“As result of their death more than 2.9 per cent of the employees lost their jobs during the year,” the NSI report said.
In 2014, 45.4 per cent of dead enterprises, were classified in the “wholesale and retail trade; repair of motor vehicles and motorcycles” sector.
The most viable were the enterprises in the mining and quarrying sector, water supply; sewerage, waste management and remediation activities sector, and electricity, gas, steam and air conditioning supply sectors, where dead enterprises added up to less than one per cent, the NSI said.
The statistics institute said that 80.8 per cent of the enterprises born in 2014 were still in business one year later.
Overall, for the 2011 to 2015 period, businesses that had no employees represented the largest share of businesses in Bulgaria. In 2015, 44.9 per cent of businesses in Bulgaria said that they had no employees.
There were 136 133 enterprises in the next group, one to four employees, which accounted for 40.1 per cent of the total number in 2015.
Businesses with five to nine employees were the smallest group, at 7.4 per cent, while in the “10 or more employees” group on average for the five year period accounted for eight per cent of active businesses.
The number of people employed in the 10 or more employees group represents 69.5 per cent of all employees for the 2011 – 2015 period, the NSI said.
The statistics institute said in 2011 to 2015, the largest number of newly-founded enterprises was in the “wholesale and retail trade, repair of motor vehicles and motorcycles” category, at an average of 44.2 per cent over the five-year period.
At the same time, the smallest share of newborn enterprises was in the mining and quarrying sector with less than 0.1 per cent on average for the whole period.
For the period 2011 – 2015, the number of newborn enterprises that did not hire employees is the highest. In the zero employees group in 2015 there are 25 516 newborn enterprises followed by the “one to four employees” group with 13 381 enterprises. In the same year the newborn enterprises with 10 or more employees added up to only 515, the NSI said.
In 2014, 39 333 businesses were founded, and in 2015, 31 779 were still around.
The highest survival rate, a year after being founded in 2014, were businesses in the “information and communication” sector, at 88.8 per cent. The lowest survival rate was in the real estate sector, at 67.2 per cent, the NSI said.