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Figures for the regional economy

4th Quarter, 109 new businesses

Over the course of the last quarter of 2020, 109 new businesses in the region joined the commercial register.  This figure is higher than the previous quarter and than the same period in 2019 (Q4 2019: 97 new businesses).  Nevertheless, over the whole year, the region only recorded 369 new businesses, which is less that in previous years (2019: 381, 2018: 441). 

Just like for the first 9 months of the year, the overall sum between new registers/arrivals versus departures/bankruptcies/closures over the 4th quarter sounds a positive note, working out at +49 businesses.  For the entire year, this number climbs to +120 businesses, in other words, a significant rise compared to previous years (2019: +91, 2018: +96).

This result is certainly very pleasing, but we should be wary of reading too much into this.  Taking into account the drop in the number in absolute terms of businesses created, it in fact mainly reflects a downturn in terms of departures/bankruptcies/closures.  In light of this, we should be mindful that the data from the commercial register are subject to a time lag since newly created businesses appear on the register from the moment they join, regardless of when they actually start up, whereas those facing difficulties leading to a potential cessation of activity may experience a long delay before this situation figures on the register.

Clearly, entrepreneurial dynamism has been affected by the current crisis, leading to a second year in which we have seen a drop in the number of businesses created in the region.  This, along with the very real difficulties faced by numerous stakeholders (even if this has not yet figured on the Commercial Register), paints a relatively bleak picture of regional economic activity, as was unfortunately only to be expected in the current context.

We will be paying very close attention to results in the next few quarters and to the impact, beyond the current crisis, both on business creation as well as on the conduct of business of established enterprises.  

Promove will provide further updates and a new year of analysis at the start of April 2021.

Sources: Analysis based on the daily bulletin of reports from the commercial register.