In 2024, both Finland and Sweden saw the highest number of bankruptcies in 21st century, driven by challenges in industries such as construction and retail. In Norway the situation remained slightly better, with 2024 bankruptcy numbers not reaching the record years of 2003, 2018 and 2019, but nearly 30 % of all bankrupt companies were in the construction industry. Nordic data intelligence company Enento Group and its local companies Suomen Asiakastieto Oy in Finland, Proff AS in Norway and UC AB in Sweden compared key business figures from 2024 and beginning of 2025, offering a snapshot of the region’s economic landscape. In this article, our local experts Amanda Aldestam from UC, Stine Glibstrup from Proff and Jaakko Nors from Asiakastieto will share their insights.
“Bankruptcies in Sweden and Finland remain in critical levels, with industries like construction, retail, and hospitality facing ongoing challenges. While in Sweden there are early signs of recovery, the situation remains tough, and we expect also this year to be difficult for businesses dealing with financial strain. Finland, on the other hand, has seen slightly more bankruptcies in the beginning of 2025 than in the record year 2024 at this same time”, says Amanda Aldestam, Analyst at UC.
Finland and Sweden saw the highest number of bankruptcies in the 21st century
In 2024, Finland and Sweden both saw the record number of bankruptcies in 21st century with over 3000 Finnish companies and over 10 000 Swedish companies going bankrupt. Sweden experienced almost 21 % increase in bankruptcies compared to 2023, while the increase in Finland was nearly 12 %. Over 4500 Norwegian companies went bankrupt last year, but the situation in Norway was slightly better than in its neighboring countries. The record year of bankruptcies in 21st century in Norway was 2003, with 2018 and 2019 on second and third places.
While most of the companies that went bankrupt in all three countries last year had less than 1 million € yearly turnover, a significant number of bigger companies also struggled with difficulties. In Sweden over 800 companies with over 1 million € turnover went bankrupt in 2024, while in Finland the number was over 360. Norway stands out from its neighbors in this case too – last year a little under 150 Norwegian companies with over 1 million € turnover went bankrupt.
“The lower number of bankruptcies among larger companies in Norway could be due to Norwegian companies often having better financial buffers. Businesses in Norway also benefit from government support and generally stable environment. It is also important to remember that Norway has fewer large companies but many small and medium-sized enterprises. A smaller domestic market and high cost require Norwegian companies to be quite robust to survive”, reminds Stine Glibstrup, Head of Freemium and Premium Solutions at Proff.
Same three industries struggle in the region: construction, retail and hospitality
“2024 was a challenging year for many industries, with the construction sector taking the hardest hit in all three countries, especially in Norway. The other two industries that struggled last year were retail and hospitality – these industries are especially vulnerable to reduced private spending. The bankruptcy level in 2025 is roughly the same as last year in all three countries, and unfortunately, we do not expect the trend in the most vulnerable industries to reverse quickly. While the private economy is growing slightly in Norway, Finnish consumers trust in the economy remains low despite positive developments, such as decreased interest rates and slowing inflation. In Sweden signs of recovery have emerged in early months of this year, with central banks cutting interest rates”, says Aldestam.
Nearly 30 % of all companies that went bankrupt in Norway last year were from construction industry. The industry also faced significant struggles in Finland and Sweden, construction companies amounting for 22,5 % of Finnish and nearly 19 % of Swedish bankruptcies. Retail industry faced challenges in all the countries – nearly 19 % of all the bankrupt companies in Sweden were in retail industry, while in Norway the percentage was 18 % and in Finland 16 %.
“The hospitality industry has faced some tough years recently. High inflation, high interest rates and decreased private spending followed the years of covid restrictions, so it’s no wonder a lot of hospitality businesses are going down. Last year, in all the three countries around 9-11 % of all bankrupt companies were in hospitality industry. In 2025 the outlook for the industry really depends on whether consumers start to loosen their purse strings or not”, says Jaakko Nors, Product Owner at Suomen Asiakastieto.
Increased private consumption needed for many industries to recover
During the first months of 2025, the rate of new business formations in all three countries has fallen slightly behind the 2024 numbers. In Sweden, a little over 4000 new limited companies were founded, while Norway saw almost 3000 new limited company formations and Finland a little over 2400.
“The last few years have been challenging for entrepreneurs, and this has certainly left many with a sense of insecurity. While there are positive signs of recovery in all three economies, it may still take time for consumer sentiment to turn around. A recovery in consumption would have a positive impact on the outlook for high-risk industries such as hospitality and retail. This would likely also encourage the creation of new businesses, which is badly needed in all three countries after record-high year in bankruptcies. For now, the numbers do not yet point to positive developments, but it is important to remember that many other economic indicators point to better times ahead,” reminds Nors.
More information and statistics can be found from the attached Nordic Bankruptcy Statistics statistics 2024 report.
