'We got scared of running business': GUS

In 2020, 12.4 percent fewer new enterprises were established than in the previous year, according to the latest data of the Central Statistical Office (GUS). This means that 44,000 fewer people chose to run their own business, which is a consequence of the uncertainty related to the coronavirus epidemic. The NBP analysis shows that the percentage of entrepreneurs who consider the lack of predictability as the greatest barrier to development remains high. Personnel Service experts indicate that this prevents starting a business, although, after the collapse in the second quarter, stabilization was visible in the second half of the year. Already in previous years, one could notice a decline in the economic activity of Poles, but the impact of the pandemic is undeniable.

"In 2019, more than 10,000 fewer new companies were established than in 2018. The scale of last year's decline is impressive, however. Almost 44,000 fewer new companies clearly show how strongly the pandemic left a mark on the plans of future entrepreneurs. We will analyze the data from individual quarters. The largest reduction in new registrations, by 31.8 percent y/y, was noticed in the second quarter, i.e. at the beginning of the pandemic, when the fear of the coronavirus and its consequences was greatest. In the third quarter, it was only 0.5 percent fewer new companies, and 3 percent less in the fourth, when large restrictions were introduced again. So stabilization can be seen in the second half of the year," Krzysztof Inglot, president of Personnel Service and labor market expert, said.

(WBJ)