New data published by Eurostat outlines a mixed outlook for the European business environment at the end of 2025, with a modest increase in company registrations alongside a continued rise in bankruptcies.
In the fourth quarter of 2025, the number of newly registered businesses in the European Union increased by 0.5% compared to the previous quarter. At the same time, bankruptcy declarations rose by 2.5%, highlighting the ongoing pressure faced by companies across multiple sectors.
Looking at sectoral developments, the strongest growth in business registrations was recorded in information and communication, which increased by 6.4%. This was followed by industry, with a 4.9% rise, and accommodation and food services, which grew by 1.3%. These figures suggest that innovation-driven and service-oriented sectors continue to attract new entrepreneurial activity.
However, not all sectors followed the same trend. Slight decreases were observed in trade, as well as in construction and transport, indicating a slowdown in more traditional areas of the economy.
At the same time, bankruptcies increased in most sectors. The most significant rises were recorded in accommodation and food services, followed by information and communication and transport. This reflects ongoing structural and cost-related challenges affecting businesses, particularly in sectors exposed to fluctuating demand and operational pressures.
Overall, the data points to a complex economic landscape in which entrepreneurial activity remains active, but business sustainability is under strain. The simultaneous increase in both company creation and failure highlights a dynamic yet uncertain environment for European enterprises.
From a JEUNE perspective, these trends reinforce the need to support young entrepreneurs and SMEs through policies that enhance resilience, encourage innovation, and ensure long-term business sustainability across the European Union.
For more details, see Eurostat’s official release:
https://ec.europa.eu/eurostat/web/products-eurostat-news/w/ddn-20260216-1
