Regular summaries of statistics on new business registrations show that in some months this year, the number of newly registered companies was higher than in the corresponding period last year.

Lursoft has analysed which sectors have registered the highest number of new businesses this year, and has also investigated whether there is a difference in sectoral popularity between the first six months of this year and last year.

In the first half of this year, 4,305 new companies were registered, 532 fewer than in the corresponding period in 2021, while 5,799 companies were liquidated, of which 3,293 cases involved the Enterprise Register having previously made a decision to terminate their operations.

Lursoft has found that nearly a tenth of all companies registered in the first six months of this year operate in the retail sector. Last year, 12.11% of new companies registered in the first half of the year indicated retail as their primary sector of activity.

It is interesting to note that this year there is a numerically higher number of new companies that have decided to work in the land and pipeline transport sector. Lursoft has found that 208 new land and pipeline transport companies were registered in the first six months of last year, whereas this year, in the first half alone, the figure has already reached 355. Another positive trend should be highlighted: with the number of liquidated companies in the sector decreasing, a positive growth in the number of companies in the land and pipeline transport sector has been observed in the first half of this year, as the number of new companies has exceeded those liquidated. Currently, a total of 6,899 companies are registered in the sector.

Sectors with the highest number of companies

Lursoft has found that the number of new companies exceeded the number of liquidated companies only in certain sectors. In addition to the aforementioned land and pipeline transport sector, positive dynamics in the first half of the year were also observed in the electricity, gas, steam and air conditioning supply sector, as well as in the field related to financial service activities. Furthermore, there were 10 more new companies than liquidated ones in the furniture manufacturing sector. In several other sectors, the total number of companies remained unchanged or changed minimally at the end of the first half of the year. For example, in the accommodation sector, where 37 companies were liquidated in the first six months of 2022, while 40 new ones were registered.

The most significant decline in the number of companies at the end of the first half of this year was recorded in the retail, agriculture, and specialised construction sectors. Information compiled by Lursoft reveals that fewer than 400 retail companies were registered in the first six months of this year, while 200 more were liquidated. In the wholesale sector, there were also 200 more liquidations than new registrations during this period. There were also 117 more liquidated companies than newly registered ones in the crop and animal production sector during the first six months of this year. It should be noted that the aforementioned sector, unlike last year, is no longer among the Top 10 leaders by the number of new companies during the period under review. The other Top 10 sectors from last year can also be found in the list this year, although they have changed positions relative to one another.

Despite the fact that the number of new companies in the sector in the first six months of this year was lower than in the corresponding period last year, retail remains in the lead in terms of the number of new companies, and wholesale has also maintained 4th place among the sectors with the most companies registered in the first half of the year.

With crop and animal production leaving the Top 10 list in 2022, it has been replaced this year by providers of other personal services. It should be added that in terms of the number of new companies registered in the first half of 2022, crop and animal production is in 13th place.

Among the Top 10 most popular sectors for newly registered companies, only in the already mentioned land and pipeline transport field were there more new companies than liquidated ones in the first six months of this year.

10 most popular sectors for newly registered companies in the first six months of the year

Several of the sectors that have made it into the Top 10 most popular areas among newly registered companies can also be found among the sectors with the most frequently liquidated companies.

For instance, there is still high interest in retail, which is one of the largest sectors in Latvia in terms of company numbers, and therefore it is among the leaders in terms of new companies, but at the same time, given the fierce competition in the sector, it is also in first place in terms of the number of liquidated companies. In the first six months of this year, 630 retail companies were liquidated. It should be pointed out, however, that this is 32.42% less than in the corresponding period last year. In total, 18,663 companies are registered in the retail sector in Latvia.

The number of liquidated companies in wholesale has also decreased this year. Information compiled by Lursoft reveals that in 2022, in the period from January to the end of June, 427 companies in this sector were liquidated, while in the corresponding period last year, the figure was significantly higher – 711.

The list of sectors with the highest number of liquidated companies has remained similar to last year. However, the trade and repair of motor vehicles and motorcycles is no longer among the 10 sectors with the highest number of company liquidations in the first six months of the year, having been replaced on the list by crop and animal production.

Comparing how the number of liquidated companies has changed across sectors, it can be seen that along with the decrease in the total number of liquidated companies, almost all of the most frequently liquidated sectors have recorded a decrease. The exception is the crop and animal production sector, where 19.32% more companies were liquidated in the first six months of this year than in the same period last year.

It should be noted that in the first half of this year, besides crop and animal production, there were only a few sectors where the number of liquidated companies increased compared to the same period last year. This is the case, for example, in the fishing and aquaculture sector, and the arts, entertainment and recreation sector.

Sectors with the highest number of liquidated companies in the first six months of the year