Czech Republic sees surge in entrepreneurs in early 2025

In the first quarter of 2025, the Czech Republic registered a significant rise in entrepreneurial activity, with 10,327 more entrepreneurs active compared to the same period last year—an eightfold increase year-on-year. This data comes from an analysis by CRIF – Czech Credit Bureau, based on information from the portal www.informaceofirmach.cz.

During the first three months of the year, 23,106 individuals launched new businesses, while 12,779 ended their operations. Although the number of new business registrations was comparable to early 2024, a sharp decline in business closures contributed to the net increase in entrepreneurs. Analyst Věra Kameníčková from CRIF noted that the number of closures is returning to levels seen before the mandatory introduction of electronic data boxes.

The largest number of new entrepreneurs appeared in Prague (4,429), followed by the Central Bohemian Region (3,123) and the South Moravian Region (2,587). These regions also recorded the highest number of business closures, with Prague leading at 1,727.

Only four regions saw an increase in new business registrations compared to the first quarter of 2024. The Karlovy Vary and Olomouc regions experienced the largest growth at 8%, while the Hradec Králové Region saw a 10% decline. Business exits decreased across almost all regions, most notably in the Zlín, Liberec, and Prague areas—each recording drops of around 48%.

Prague also saw the most dynamic net growth, with 26 new businesses created for every 10 that closed. By contrast, the Karlovy Vary Region experienced the slowest growth, with 13 new businesses for every 10 closures.

Sector-wise, most new businesses were launched in construction, manufacturing, and professional services. The construction sector saw a 12% year-on-year increase in new entrepreneurs. The most rapid growth, however, was in the mining and quarrying industry, where six new businesses opened for every one that closed. Cultural and recreational activities also saw notable gains.

The business and catering sectors continued to experience a decline in entrepreneurship, aligning with longer-term trends.

Demographic data shows an increasing share of business closures among entrepreneurs under 30. Meanwhile, those over 61 accounted for the highest number of closures. Women represented 38% of those who ceased business activities, mirroring their share of total entrepreneurs. A notable trend this year is the rise in closures among businesses that were less than five years old, which now make up more than one-fifth of all discontinued operations.

Source: CTK