Almost 100 companies created every day in 2014
Till October has been created each day almost a hundred companies and it has been registered a decrease of insolvencies. However, those happen more in building and public works sector, according with IGNIOS consulting.
In the first 10 months of 2014, each day were built 97,7 companies and declared insolvent 18,7. This relation compares 97,9 enterprises created each day in 2013 and 22,2 insolvent, according to an analysis of IGNIOS consulting.
In October were created 3.158 companies in Portugal, which increased to 29.705 the number of companies registered between January and October 2014. This volume confirms the reduction of the difference between 2014 and 2013, being currently only 1.3% under the 29.784 companies created in the first 10 months of 2013.Regarding companies’ insolvencies, in October were recorded 579, a number that presents a decrease of 29,3% compared to the 820 insolvent companies registered in the same month last year. If we excluded September – this year is considered atypical due to the procedural constraints from Citius -, October is the third month in 2014 in which the number of monthly insolvencies is under 600, which in 2013 was only verified in august.
In the Insolvencies and Constitutions of Enterprises Observatory referent o October, IGNIOS highlight that, in the cumulated year (10 first months), the number of insolvencies is fixed in 5.698 compared with 6.748 insolvent companies of the same period last year. However, the procedural constraints of Ministry of Justice, namely the instability of its platform Citius in the end of August and during almost all September, probably do not reflect the total amount of insolvencies.
Lisbon leads companies’s births
Regarding activity sectors, Building and Public Works sector is the area that presents the biggest number of insolvencies (19% of the cumulated year), followed by “Other services” sector (18,2%), Retail Trade (16,3%) and Gross Trade (12.1%). The Fashion Industries confirm its decrease tendency, with 5,2% of the total of insolvencies in 2014 (6,3% in 2013), which is due to the increase of exports, accelerated in 2014. In the constitution of companies, services sector continue to dominate, concentrating 40,7% of created companies between January and October. Agriculture (from 10.6% to 11%) is one of the activities that increase its weight in the total of created companies.
In geographic distribution, Lisbon district concentrates the biggest number of created companies (8.603), followed by Oporto (5.575 new companies) and Braga (2.555). The same three districts are leading insolvencies, yet in a different order, as Oporto commanding (1.301). Lisbon registered 1.241 insolvencies in 2014 and Braga 632.
The Portuguese businesses continue to be mostly made of SME’s, being 92.1% of the created in 2014 (8.603) with equity equal or superior to 25 thousand euros. The insolvencies dominate micro-companies, which absorb the first 10 months of this year.
Source: Revista Invest