Over 9,000 new firms launch in Cyprus as business creation outpaces closures

Cyprus recorded 9,152 new enterprises in 2024, while 5,566 businesses closed, according to Eurostat data showing that new business creation outpaced enterprise deaths on the island during the year. The figures gave Cyprus an enterprise birth rate of 9.70 per cent, compared with a provisional enterprise death rate of 5.90 per cent. The data put Cyprus below the EU average for business creation but also showed a considerably lower rate of enterprise deaths than the bloc as a whole. Across the EU, 3,541,482 enterprises were created in 2024, giving the bloc an enterprise birth rate of 10.36 per cent. A provisional 3,143,782 enterprises ceased trading during the year, corresponding to a provisional death rate of 9.20 per cent. Overall, the EU had 34 million enterprises in 2024, with around 3.5 million created during the year. At the same time, around 3.1 million enterprises ceased operating. This resulted in an EU enterprise birth rate of 10.4 per cent and a death rate of 9.2 per cent. The figures were published by Eurostat as part of its business demography data, which tracks the creation and closure of enterprises across the EU. Business creation across Europe More enterprises were created than dissolved in 19 of the EU’s 27 member states during 2024. The opposite was recorded in Bulgaria, Denmark, Germany, Estonia, Ireland, Hungary, Poland and Slovakia, where the number of enterprises that ceased operating exceeded the number of new businesses created. Lithuania recorded the highest enterprise birth rate at 17.5 per cent, followed by Portugal at 16.1 per cent, Malta at 14.4 per cent and France at 14.2 per cent. The lowest enterprise birth rates were recorded in Austria at 6.3 per cent, Denmark at 7.2 per cent and Germany at 7.8 per cent. Enterprise deaths showed a different pattern, with Estonia recording the highest provisional death rate at 29.2 per cent. Ireland followed with a provisional rate of 16.9 per cent, while Lithuania recorded 15.6 per cent. The lowest provisional enterprise death rates were recorded in Greece at 3.9 per cent, Malta at 4.4 per cent and Austria at 5.3 per cent. The differences between countries reflect the varying pace at which businesses were created and ceased operating during the year. High-growth businesses Eurostat also identified a substantial group of high-growth enterprises among businesses employing at least 10 people. In 2024, there were 180,200 enterprises that had at least 10 employees at the beginning of the three-year period preceding 2024 and recorded average annual employment growth of more than 10 per cent. These high-growth enterprises represented 10.0 per cent of EU enterprises with at least 10 employees. Together, they provided employment for 14.1 million people. The business demography figures provide an indication of the rate at which enterprises are being created and disappearing across the EU, while the high-growth data highlight the contribution of rapidly expanding businesses to employment. For Cyprus, the 2024 figures show that business creation exceeded enterprise closures, with the island recording more than 9,000 enterprise births against a little over 5,500 provisional deaths. Cyprus’ 9.70 per cent birth rate was slightly below the EU’s 10.36 per cent rate, while its 5.90 per cent provisional death rate was substantially below the EU figure of 9.20 per cent.