If 2021 was a record year for company start-ups in Belgium, Graydon also found that starters launched in times of crisis live longer…
Companies founded during a crisis turn out to be generally more resilient than the others. In other words, they live longer. This is a priori good news, at the end of the pandemic and while Belgium was registering a record number of company start-ups in 2021 (119,830 starters).
When Graydon analyzed the effects of the previous crisis on new entrants, it was clear that companies founded during or shortly after this crisis proved to be more robust. Eric Van den Broele in the foreword of the new “Atlas of the Creator” published this week by Graydon, Unizo and UCM. “Companies that arise during or after a crisis show higher chance of survival on average after a few years”, adds the R&D director of Graydon Belgium.
“Companies that arise during or after a crisis show a higher chance of survival after a few years on average.”
The specific case of the catering industry
So we want to know which start-ups booked the best rates survival in recent years. The authors of the Atlas carried out the exercise for five and ten years by classifying the associations by sector† In the period 2017-2021, the starters of the Wholesale achieved the best survival rate (86.8% of companies still active), before transport and catering† This was followed successively by retail trade, services, industry and liberal professions†
More than ten years, the liberal professions turned out to be the most robust (73%!) lead on automotive, services, construction and wholesale. Surprisingly, the hospitality industry, and more in particular the cafe and restaurant industry, slipped to last place (42.2%)…
In reality, the catering industry looks like its “normal” place on the back of the package. His good ranking in the past 5 years, as well as his fine performances in 2021 alone (number of starters increases by 4.4%) can undoubtedly be explained by the exceptional measures stopped by governments because of covid: aid to the sector, moratorium on bankruptcies.
Recent progress in transport in the broad sense seems more consistent: courier and home delivery services increased thanks to and after the pandemic. The liberal professions also stand firm in the long term: medical related professions have logically had a “boom” in recent years. Second statement: “The sharp increase in the number of liberal professions opting for the business system can be explained by the reform and new insolvency law who introduced the chance of bankruptcyfor these professions, as Eric Van den Broele points out.
“The sharp increase in the number of liberal professions opting for the corporate system can be explained by the reform and the new insolvency law that introduced the possibility of bankruptcy” for these professions.
Two crises from end to end
If nothing to confirm that of the companies founded last year, these will be: again those sectors that will prove to be the strongest in five years, we can still recommend it. Except with regard to the hospitality industry and the other sectors that were most limited in 2020 due to their reinforcement artificial.
That is “a priori” good news, we said at the beginning, because today companies have to do facing a second crisis, which unfortunately lingered at the end of the pandemic: the invasion of Ukraine and its impact on the global economy through supply, energy and material prices, inflation. Hence the question: does the reasoning about an extra robustness inherited from Covid still hold? after such an accumulation of shocks? Or will this concentration of disasters in time? exhaust the theory† Early response next year, when the new Atlas comes out…
- Companies founded during a crisis generally prove more robust than others in terms of medium-term survival, according to analysis of data from the “Atlas of the Maker” by the Graydon agency.
- This is a priori good news, at the end of the pandemic and while Belgium recorded a record number of business start-ups in 2021 (119,830 start-ups).
- Some sectors seem more resilient than others, even if there are some anomalies (hospitality).
- But does the occurrence of a second crisis (Ukraine) when the previous one doesn’t completely distort the theory?