Despite the economic slowdown and pessimistic forecasts, the number of newly registered businesses in Poland is growing. The number has risen by 25 percent since last year and by 33 percent since 2010, according to data from the Center of Economic Information (COIG).

The data only includes legitimate businesses and excludes sole proprietorship contracts, which are frequently used as substitutes for employment contracts.

If the growth trend continues, a record number of businesses will be registered this year, Puls Biznesu reported.

“Mass registration of new businesses may be interpreted as a defensive reaction, an attempt to minimize the effects of the economic slowdown and cost reduction,” said Tomasz Kaczor, economist from BGK.

Interestingly, the number of newly registered companies is significantly higher than the number of those which have gone bankrupt or have been liquidated. For example, in Q3, there were 7,700 new businesses registered, but only 792 were liquidated and 147 declared bankrupt.

Poland A.M.