Less than 7% of Bulgarian Companies Survive Over 5 Years
Less than 7% of the companies set up in 2009 have made it into 2009, according to a 2009 business demography survey of Bulgaria's National Statistical Institute.
Nearly 8000 of the companies set up in 2008 were closed within a year.
The most agile and stable firms were in the finance and insurance sector, while less than 3% of real estate firms survived more than five years.
The most crisis-resistant companies in the first year of the economic downturn were newborn enterprises specialized in the production and distribution of electricity, heat energy and gaseous fuels.
The most crisis-vulnerable companies were the ones in the sphere of real estate, with every fourth such entity set up in 2008 staying in existence for one year.
According to NSI data, companies with 10-plus employees survived the longest.
However, a meager 2.1% of the new enterprises in 2009 had a total headcount of over 10 people.
Over 2/3 of the new companies hired zero employees, but they also stayed in business for the shortest periods.
In 2009, a total of 327 647 companies operated in Bulgaria, or 21% more than in 2008.
A total of 46% of the firms did not hire any employees and provided employment for a scant 5.9% of the economically active population in 2009.
In the same period, around ¾ of the job places were in companies with 10-plus workers. (Source: The Sofia Echo)