Entrepreneurship surges in Czech Republic as early 2025 sees strong start

The Czech Republic has seen a sharp rise in entrepreneurial activity in the first two months of 2025, with 15,431 individuals starting a business and 8,163 ceasing their operations. This results in a net gain of 7,268 entrepreneurs—already representing four-fifths of the net increase recorded for the entire previous year. The data comes from a recent analysis by CRIF – Czech Credit Bureau.

Analyst Věra Kameníčková of CRIF noted that January and February typically show high activity in business formation. This year was no exception, with 8,860 new entrepreneurs entering the market in January and 6,858 in February. After accounting for business closures, the net increase was 4,182 in January and 3,086 in February—both figures notably higher than the same period last year.

Over the past 12 months, a total of 82,179 people began a business, up 9% from the previous year and marking the highest number recorded in the last five years. Prague led the country with 15,925 new entrepreneurs, followed by Central Bohemia with 11,253 and South Moravia with 9,064. At the other end of the spectrum were the Karlovy Vary Region with 1,864 and the Liberec Region with 3,092 new businesses.

The strongest year-on-year growth in new businesses occurred in Prague (18%), Pilsen (11%), and Pardubice (10%). Meanwhile, the number of business closures dropped by 62% compared to the previous year, indicating a continued upward trend in entrepreneurial activity that began in the second half of 2024.

In total, 67,003 people closed their businesses in the past year. Prague again recorded the most closures (9,542), followed by Central Bohemia (8,257) and South Moravia (7,043). The Karlovy Vary Region reported the fewest business closures, with just 2,240.

The report also highlights the continued rise of Ukrainian entrepreneurs in the Czech Republic. Since the beginning of the war in Ukraine three years ago, the number of Ukrainian nationals running businesses in the country has grown by 16,820. Ukrainians now make up 3% of all self-employed individuals in the Czech Republic, with around 56,632 currently registered. Two-fifths of them work in construction, 17% in manufacturing, and a significant share in real estate.

New business activity increased in nine of the Czech Republic’s regions over the past year. Prague led with 17 new entrepreneurs for every 10 who exited the market, followed by Central Bohemia (14) and South Moravia (13). Pardubice and Moravia-Silesia each recorded a ratio of 12 to 10. Four regions—Pilsen, Zlín, Liberec, and Vysočina—saw stable numbers, while the Karlovy Vary Region was the only one where entrepreneurial numbers declined, with just eight new businesses started for every 10 closures.

From March 2024 to February 2025, most new entrepreneurs registered in construction (11,396), professional, scientific and technical services (10,030), and manufacturing (9,878). The most rapid growth occurred in mining and quarrying (27% increase), education (23%), and construction (19%).

While most sectors experienced growth, some continued to show signs of strain. Cultural and recreational activities led with 36 new businesses for every 10 that closed, followed closely by mining and quarrying (35) and information and communication services (29). On the decline were trade, accommodation and catering, and real estate, all of which have been experiencing a sustained drop in entrepreneur numbers.

Source: CRIF