In the last year the number of applications for the closure of one-man business decreased by 4.8% compared to 2023. According to experts, this does not mean clearly better conditions for doing business. There is besides an opinion that the most hard situation is in tiny retail and catering. In turn, the number of applications for suspension of JDG increased by 0.9% in this period. Experts besides point out that if the government does not accelerate reforms for this kind of companies, this year may be worse for them than the erstwhile year. Entrepreneurs are inactive struggling with a number of problems that, according to experts, could be solved reasonably quickly.
According to the data provided by the Ministry of improvement and Technology (MRIT), 188,8 1000 applications concerning the completion of single-person business (JDG) were received in the CEIDG registry in 2024. This is 4.8% little than in 2023, erstwhile specified cases were reported to be 198,4,000. In the opinion of Łukasz Goszczyński from the law firm of the GKPG, the above-mentioned number may be impressive, but in the full turnover it is rather a tiny number. We besides request to remember that there is simply quite a few rotation in the economy. 1 company closes and the another 1 opens. And that kind of balances out.
– The decline in the number of applications does not mean clearly better conditions for moving JDG. In 2024, advanced labour and energy costs continued to be faced, peculiarly affecting low margin industries. Inflation, although lower than in 2023, remained a destabilising factor, affecting consumer purchasing power and reducing the profitability of many companies. In addition, the number of restructuring proceedings increased in the last year, indicating the increasing awareness of entrepreneurs about available legal tools," comments Grzegorz Kostrzewa from the ProLegal Restructuring Office.
According to Mariusz Zielonka, the chief economist of the Leviathan Confederation, there was small legislative action last year, which could origin greater modifications. Results +/- 5% are a consequence of natural changes in the economy. According to the expert, looking at the sentiments among entrepreneurs, in the case of JDG the most hard situation inactive prevails on the retail side. This is mainly due to expanding operating costs and the inability to rise prices without the consequences of losing customers. Additionally, there is rather a fluctuations in this industry.
– Retail has been marked by any kind of stagnation for any time. This is mainly due to the fact that tiny companies are losing competition with large, frequently global players who have a stronger position. And this makes tiny sellers gotta quit their business," says legal advisor and restructuring advisor Adrian Parol.
The data of the ministry besides show how many proposals concerning the completion of one-person business activity were in individual voivodships. The ranking opens by Mazowieckie – 24.5 1000 (in 2023 – 25.6 thousand). Further we see Silesian – 15,4 1000 (a year before – 17,1 thousand), Wielkopolska – 14.4 1000 (15,4 thousand), Małopolska – 13 1000 (13,8 thousand), and Lower Silesian – 11.7 1000 (13.1 thousand). On the another hand, at the end of the list are Opolskie – 3 1000 (3,4 thousand), Podlaskie – 3.8 1000 (4,1 thousand) and Świętokrzyskie – 4.1 1000 (4,8 thousand). However, the most applications are submitted by companies without the specified place of business – 40,2 1000 (previously – 36.3 thousand).
“Mazowieckie, Śląskie and Wielkopolskie dominate the number of applications to end JDG, resulting from the concentration of companies in these regions. Larger markets, although attractive, are besides more competitive, which can lead to more turnover among companies. The increase in the number of applications submitted by companies without a circumstantial place of business may consequence from the increasing number of companies operating in the distant model – Grzegorz Kostrzewa analyses.
The Ministry's data besides shows that in 2024, 375,7 1000 applications for the suspension of single-person business were received in the CEIDG register. This is 0.9% more than in 2023, erstwhile there were 372.5 1000 specified cases. In the opinion of Mariusz Zielonka, the CEIDG database is imperfect and each application for suspension is counted separately. So assuming that individual led JDG last year and suspended it 4 times, 4 conclusions will appear in the statistics. According to the chief economist of the Confederate Leviathan, suspensions are the least meaningful thing in this database.
– I see the increase in applications by 0.9% in terms of expanding uncertainty among micro-entrepreneurs. The suspension of activities is frequently treated as a wait-out of hard marketplace conditions, specified as falling request or liquidity problems. Entrepreneurs usually choose to do so for six to 12 months. In 2025 it is possible to foretell a shorter period of time, especially in sectors that rapidly adapt to changes specified as IT services or e-commerce. In turn, the food and construction sector may require a longer period of stableness – adds Grzegorz Kostrzewa.
In addition, an expert from GKPG believes that the data on suspensions should not surprise us, and all the more worrying. Most of all, many specified companies, especially the smallest ones, operate seasonally. In addition, suspension is frequently practiced in order to last a somewhat worse time and besides to exclude current public obligations in this respect, e.g. towards the Social safety Office.
– The top influence on changes in the JDG base has the right. Given what happened in the introduction of both versions of the Polish Deal, you can see on the palm of your hand that setting up, suspending, closing companies is an component of the flexibility of our economy and besides shows the possible scale of adjustments. In 2025 the wellness contribution changes, but it is not a revolutionary move. Rather, we will keep the same unchangeable level of change – says Mariusz Zielonka.
According to Grzegorz Kostrzewa, the decline in inflation and economical stableness can reduce the number of companies closed. At the same time, the difficulty of adapting to higher costs, specified as gas charges or expanding the minimum national costs, can be hard to overcome for many entrepreneurs. As the expert forecasts, the most requests for closure and suspension can be expected in catering, retail and transport services.
– In my opinion, data from 2024 may not be repeated this year. Much will depend on how the ruling authorities will address possible changes in regulations, including, of course, on facilitation issues for specified companies. It doesn't look very awesome yet. Entrepreneurs face a number of problems that are inactive not solved. And any of them could be done truly quickly. However, if nothing changes in this matter, then of course there can be more of these closures, especially erstwhile it comes to tiny trade, gastronomy and akin professions," concludes Adrian Parol.
text and photograph source: MondayNews.pl
