There were fewer bankruptcies in Sweden, Finland, Denmark and Norway in 2021 compared to in 2019 – before the Coronavirus pandemic. New data from Enento Group and Experian shows that the Nordic countries have shown remarkable resilience during difficult times – and are now well prepared to take on post-pandemic opportunities.
Enento Group and Experian have analyzed data on bankruptcies as well as on newly established limited companies in Norway, Sweden, Denmark, and Finland, from the period of 2019–2021. The numbers show that there is a trend towards less failed companies and more new businesses, even compared to 2019 – before the pandemic.
– We are very happy to see that more companies are founded in the Nordics now than prior to the pandemic. This, in combination with the shrinking number of bankruptcies, proves that the Nordic business climate is flourishing. As we now enter the post-pandemic era, we see a strong comeback on all fronts, says Jeanette Jäger, CEO at Enento Group.
The booming industries and those who have been hit hard
During 2021, the increase of new companies in the Nordics was led by the research, real-estate, and technology industries. Perhaps unexpectedly, “Accommodation and Food Service Activities” had the average highest growth per month in all the Nordic countries. Most bankruptcies, on the other hand, were found in the construction industry.
Here are some highlights from each of the Nordic countries:
Sweden has half the number of bankruptcies compared to before the pandemic
- During the full year 2021, Sweden had a 9% increase of newly started companies – this is the second highest increase, after Norway.
- Bankruptcies were half as many as compared to before the pandemic.
- Pandemic-affected industries such as the live entertainment sector and the hotel industry have both seen a substantial increase in new companies in 2021, compared to 2020.
- Most bankruptcies in 2021 occurred in in the trade and construction industries.
- Most new companies were started in the industries of trade, law, economics, science, and technology.
Companies in service activities as well as transport and logistics have increased the most during the pandemic in Norway
- Norway has had an increase of almost 10 percent in the number of companies since before the pandemic – the highest increase in the entire Nordic region.
- The industries that performed the strongest and where most companies were started up during 2020–2021 have been in service activities as well as in transport and logistics.
- Before the pandemic, in 2019, Norway had a reduced number of companies of -3.5%, in 2021 Norway had an increase of 6.15%.
- During the full year 2021, the industries that have experienced the toughest climate and had the most bankruptcies have been construction, followed by retail and trade, and third, transport and logistics.
- The industries that grew the most in 2021 were real estate, and science and tech.
Finland stands out with a strong increase of companies in the education industry
- Finland has seen a general increase of almost 5% in the number of companies started since before the pandemic.
- The industry with most new companies in 2021 was the category science and tech.
- During 2020-2021, the categories that have increased the most in the number of newly started companies have been active in education, the real estate industry and information and communication.
- We can also see that the industries that have suffered the most and had the most bankruptcies in 2021 were construction, followed by retail.
Denmark’s finance and insurance sector has seen a huge increase in new companies in 2021
- Denmark has had a general increase of 4% in the number of companies started in 2021.
- The sectors that have had the highest number of bankruptcies in 2021 are finance and insurance, followed by retail and construction.
- At the same time, the finance and insurance sector is the sector that has increased with the highest number of newly started companies in 2021 – a marked increase of almost 15%.
- During 2020–2021, the finance and insurance sector had a 26.5% increase of new companies. In the entertainment and recreation industry the increase was 8.6%, and in the the education industry 7.2%.