This is illustrated in the table below prepared by Clarify Capital

[nusaiba129]

Of course, it can be said that in parallel with the growing number of companies terminating/suspending their activities, the number of companies starting/resuming them increased.

It turns out, however, that the key difference here lies in the rate of growth.

And thus, just as in 2020 there were 2,000 more companies entering the market than those disappearing, in 2022 there were 76,000 more going bankrupt, and in 2023 there were 88,000 more.

The situation has gone from moderately optimistic to extremely pessimistic.

From another study, this time conducted on the American market, italy telegram data we learn that 1 in 5 businesses disappears after only a year of starting operations.

Half of those that survive will likely fail within the first five years.

.

after what time do companies go bankrupt - why do companies go bankrupt

Source: Clarify Capital, 2024

It is therefore worth explaining what is behind the failures of young companies.

Until recently, we could blame the pandemic for their difficult situation, but today the reasons why business owners are closing their businesses in such large numbers are completely different.

Let's see what the research tells us on this subject.