New data from Eurostat shows that both business registrations and bankruptcies increased in the European Union in the third quarter of 2025, highlighting a mixed but dynamic business environment.
In Q3 2025, the number of business registrations rose by 4.0% compared to the previous quarter, continuing the upward trend in entrepreneurial activity. At the same time, bankruptcy declarations increased by 4.4%, indicating growing pressure on businesses.
The increase in new businesses was recorded across all sectors. The strongest growth was observed in information and communication (+6.0%), followed by construction (+5.9%) and transport (+5.5%), suggesting continued interest in both digital and infrastructure-related activities.
At the same time, bankruptcies showed mixed developments across sectors. The largest increases were recorded in accommodation and food services (+20.7%), transport (+18.7%) and financial services (+14.1%), while some sectors such as information and communication and construction saw slight declines in bankruptcies.
These trends indicate that while new business creation remains strong, many companies continue to face economic pressures and operational challenges.
For young entrepreneurs and SMEs, this reflects a complex landscape. Opportunities for launching new businesses remain significant, but sustainability and resilience are becoming increasingly important.
JEUNE considers that rising entrepreneurial activity is a positive signal, but the increase in bankruptcies highlights the need for stronger support mechanisms to help young businesses grow and remain sustainable over time.
Overall, the data points to a dynamic but uncertain business environment, where growth and risk continue to coexist across the European economy.
Useful link:
https://ec.europa.eu/eurostat/en/web/products-eurostat-news/w/ddn-20251114-2
