Giant scale of closure of tiny companies in Poland

magnapolonia.org 1 month ago

The economical data for the past year, which appear in public space, are alarming. In 2025 to the CEIDG registry affected nearly 197 000 applications for the closure of one-man business activity and 288.8 000 applications for the beginning of JDG. For comparison, 189 1000 requests for deletion and 288.8 1000 for beginning were submitted in 2024. In the last year there was 4.1% more liquidation than in 2024.

Giant scale of closing tiny companies in Poland. Last year in 7 voivodships, the number of applications to close JDG was higher than the number of requests to open. It is Kuyavian-Pomeranian, Lubuskie, Pomeranian, Silesian, Świętokrzyskie, Warmian-Masurian and West Pomeranian. In addition, 388.1 1000 applications for suspension of JDG were received in the CEIDG registry in the last year, i.e. 3.3% more than in 2024.

Last year, 196,7 1000 applications for the closure of one-man business were received in the Central registry of economical Activity (CEIDG). This is 4.1% more than in 2024, erstwhile there were 189 000 specified cases. prof. WSB-NLU Jerzy Choroszczak, PhD in economical sciences in management sciences, notes that the increase in the number of applications to close JDG in 2025 is not large, but may be a worrying signal that individual entrepreneurs are having expanding problems with marketplace challenges.

“There are expanding labour, energy and accounting costs and external turbulence, including expanding competition and legal instability. The decreasing gross in relation to higher costs, even if these trends are temporary, makes the situation of entrepreneurs likely to deteriorate rapidly in the absence of adequate financial collateral buffers. This may consequence in a decision to close the company," the prof. explains.

Commenting on these data, the legal advisor and restructuring advisor Łukasz Goszczyński of the law firm GKPG notes that the increase in the number of applications for the closure of JDG in 2025 may be a bit worrying. In the last year the marketplace situation was comparatively good, so the consequence should alternatively go the another way, i.e. it indicates a slight decrease.

– In addition, the above-mentioned consequence confirms that individual entrepreneurship continues to grow, but very slowly. It is besides worth noting that the number of JDG companies created in 2025 was almost at the same level as in 2024, while the number of closures increased. This indicates the stabilisation of Polish entrepreneurship with an component of expanding difficulties in the functioning of enterprises – concludes Dr Jerzy Choroszczak, prof. of WSB-NLU.

Data from CEIDG besides show the situation in individual voivodships. The number of applications for JDG closures was little than the number of requests for opening. On 196,7 1000 applications for closure in 2025, 288,8 1000 applications for the beginning of one-man activity were submitted. In 2024 there were 189,000 applications to remove the company from the registry and 288,8 1000 requests to open. In the last 7 voivodships, the number of applications for closure was higher than the number of applications for opening.

This is the Kuyavian-Pomeranian (7,8 1000 – closures, 7.5 1000 – openings), Lubuskie (4,6 1000 vs. 4,4 thousand), Pomeranian (10,3 1000 – closures, 10,2 1000 – openings), Silesian (16,1 1000 – closures, 15,8 1000 – openings), Świętokrzyskie (4,1 1000 vs. 3,8 thousand), Warmian-Masurian (5,3 1000 – closures, 4,8 1000 – openings) and West Pomeranian (8,3 1000 vs. 7,5 thousand).

– This phenomenon shows that the business balance in Poland is not uniform territorially, but should not be interpreted solely by the prism of geography. The differences between the voivodships are mostly due to the structure of local economies and to the dominant industries, not to the administrative conditions of conducting the business," explains legal advisor and restructuring advisor Adrian Parol.

To this end, the expert adds that in regions where the sectors more delicate to energy costs, labour costs or seasonality prevail, JDG closures may outweigh openings even with a mostly unchangeable economical situation. – At the same time, it is crucial that the largest number of applications are for activities without the indication of the voivodship, and in this group the openings over closures are clearly outweighed. This suggests that the increasing part of JDG functions outside the classical regional division – it is complemented by Parol.

Last year there were besides 388.1 1000 applications for JDG suspensions in the CEIDG register. This is 3.3% more than in 2024, erstwhile they were submitted to 375,7 1000 Sebastian Sajnog of the Polish economical Institute (PIE) notes that the suspension of the business very frequently does not mean a permanent exit from the market, but a "waiting" mode, which results from seasonality, temporary deficiency of orders, investigating the profitability of the business, sometimes preparing for a change in the legal form.

Therefore, as the expert argues, it is hard to talk of clearly felt negative effects on the economy as a whole. Prof. Choroszczak emphasizes that the analysis of data from the years 2023-2024 proves that in 2024 there were 2% more suspended single-person business activity than in 2023.

– In 2025, we had to deepen the negative upward trend in the number of suspended individual economical activities. This is not a dramatic increase and may be due to temporary difficulties for entrepreneurs, but does not give any reason to be optimistic, especially in connection with the increase in the number of closed single-member activities. If we add to each another the number of closed and suspended JDGs in 2025, it turns out that they exceed importantly the number of initiated fresh JDGs – added Prof. Choroszczak.

In addition, an expert from GKPG adds that the year 2025 was for single-member economical activities primarily a period of endurance alternatively than dynamic development. Entrepreneurs have mostly functioned in conditions of large uncertainty, and it is peculiarly worrying that they have increasingly decided to completely close companies alternatively of temporary suspension. Today, it mainly acts as a safeguard mechanics to give entrepreneurs time and to prevent them from yet withdrawing from the market. another marketplace experts are besides of the same opinion.

– Suspensions are clearly more than closures, which can be considered a affirmative signal, due to the fact that it means that entrepreneurs are more frequently trying to wait out a more hard period than leaving the business. That's little and little of a failure. The final conclusion is clear. Today, the Polish economy is not faced with a wave of bankruptcy of JDG in a formal sense, but with a massive economical phenomenon of insolvency, which is solved outside the strategy of restructuring and bankruptcy of entrepreneurs, and precisely by a conscious decision to wait out – summarizes Mr. Adrian Parol.

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