The number of new companies that emerged up to September this year was 8.9% higher than the one registered in the same period, with a total of 33,898, according to data from consultancy Informa D & B.
“These values, given the consistency they reveal over the last nine months, will make 2018 the record year of birth of companies in Portugal,” the company said in a statement.
On the other hand, “the closures also registered an increase compared to the same period, while the new insolvencies maintain the downward cycle,” Informa D & B reported.
Thus, at the end of the first nine months of this year, they closed 18.6% more than in the same period of 2017, for a total of 11,801.
“The sectors that contributed the most to this registration were services (2732 closures) and retail (2101 closures), which corresponded to increases of 9.7% and 16.7%, respectively, compared to the same period last year,” said the consultant.
Insolvencies dropped, and until the end of September “there were fewer 1809 new lawsuits initiated, which represents a decrease of 11.0% over the same period of 2017”.
The “overwhelming majority” of the new insolvencies are concentrated in manufacturing, services, retail, construction and wholesalers, although all these sectors registered a decline compared to the same period, according to the same source.
Regarding meeting supplier payment deadlines, they remained similar to those of the first months of this year, “in the lowest values since 2007, with only 14.9% of the companies to comply with”.
The consultant’s report also highlighted the positive contribution of tourism and the recovery of construction.
“The activities linked to tourism make a major contribution to the birth of new companies: real estate activities (659 births, 23.8% more), especially in the metropolitan areas of Lisbon and Porto, construction (513 births plus 19, 1%), with more emphasis on construction and real estate development activities in the districts of Lisbon and Sintra, transport (481 more births, 54.4% more), reported Informa D & B.
The Information and Communication Technology (ICT) sector “has maintained a strong growth of new companies, with the constitution of 1337 entities since the beginning of 2018 (plus 196 companies, plus 17.2%),” according to the consultant’s data.
Lisbon is the district with the most new companies (11,769), followed by Porto, with 6062.
“In the last 12 months, the ratio between births and closures at the national level is 2.6 (there are 2.6 new businesses for each one ending),” Informa D & B concluded.