Coronavirus in Poland: the influence on Polish economy — 4 times more suspensions of business activity
From March 1 to April 6, 2020, 15 000 fewer sole proprietorships were opened in Poland than last year in the same period and 4 times more were suspended than in 2019. Each week of economic paralysis with the COVID-19 epidemic and the unrest associated with the current situation is clearly reflected in changes of the business statuses in Polish business registers.
As a data provider of all enterprises and entrepreneurs registered in Poland, we decided to investigate how the coronavirus epidemic and subsequent economic restrictions introduced by the government affect Polish companies.
The biggest changes are being seen now in CEIDG (ang. Central Registration and Information on Business) — one of two main business registers in Poland. On March 31, 2020, a peculiar record was set — as many as 9,151 entrepreneurs suspended their business activities at CEIDG, and 1,353 closed it.
CEIDG includes only company information on natural persons conducting sole proprietorships and because those are mostly 1–10 people businesses, the economic crisis caused by COVID-19 affected them first. What is more, the sole proprietorship is the most popular business form in Poland — currently, there is 2.3 million of it whereas all the other business forms altogether are 600 thousand.
To find out more about CEIDG and the second main business register in Poland, KRS, visit our Transparent Data website.
How many entrepreneurs in Poland suspend, close or open their business activities during the coronavirus epidemic?
Week by week from the first COVID-19 cases in Poland
It is said that concrete data is always impressive. It is so now. Look how the prevailing anxieties and the ongoing economic crisis are reflected in the CEIDG registry of sole proprietorships itself:
1–7 March 2020 | The first cases of coronavirus in Poland
- 14 657 business activities were opened (a year earlier, in 2019, 15 499 were opened in the same period)
- 10 851 business activities were suspended (same days in 2019: 4437)
- 5047 business activities closed (same days in 2019: 6049)
March 8–14, 2020 | Poland closes borders, cinemas, theaters, pubs and restaurants, all concerts, sporting events, and mass gatherings are canceled
- 4479 business activities were opened (same days in 2019: 4587)
- 4751 business activities were suspended (same days in 2019: 717)
- 2592 business activities closed (same days in 2019: 2566)
March 15–21, 2020 | Gyms and yoga schools are closed, a short-term rental is banned
- 2234 business activities opened (same days in 2019: 4013)
- 6895 business activities were suspended (same days in 2019: 781)
- 1076 business activities closed (same days in 2019: 2603)
March 22–28, 2020 | The activities of stores in shopping malls are suspended
- 896 business activities opened (same days in 2019: 1936)
- 3783 activities suspended (same days in 2019: 941)
- 1164 business activities closed (same days in 2019: 2699)
March 29 — April 6, 2020 | Hairdressing, cosmetics, tattoo and piercing salons and physiotherapy are banned
- 5506 business activities were opened (same days in 2019: 16 917)
- 29 857 business activities were suspended (same days in 2019: 6778)
- 3305 business activities closed (same days in 2019: 6797)
Conclusions?
Firstly, from March 1 to April 6, 2020, 15 000 fewer economic activities were opened in Poland than last year in the same period (27 772 in 1/03–6/04/2020 vs. 42 952 in 1/03–6/04/2019) and over 4x more were suspended (56 137 suspended from 1/03-6/04/2020 vs. 13 654 suspended from 1/03-6/04/2019).
So it is clear that the COVID-19 epidemic has hit the Polish economy, and yet it’s only been the first month.
Considering the fact that the current restrictions should be expected to be extended until the end of April, or maybe May, more and more small companies (medium and large, too) will hang or close.
