One-Tenth of New Businesses in Czech Republic Started By Ukrainians
So far this year 4,904 Ukrainians have started businesses in the Czech Republic. Credit: Freepik.
Prague, Oct 31 (CTK) – Around 9% of the 55,000 people who started businesses in the Czech Republic in the first three quarters of 2023 are Ukrainian, according to an analysis by the CRIF – Czech Credit Bureau released today.
Before the start of the war, Ukrainians made up 1-2% of business start-ups.
“According to current information, there are about 360,000 more Ukrainians in the Czech Republic than before the war, so it is logical that many of them decided to run a business,” said CRIF analyst Vera Kamenickova. “So far this year, at the end of the third quarter, 4,904 Ukrainians have started a business, which is about 545 per month.” She said she expected the annual total to surpass last year’s 5,709 businesses (476 per month).
The largest number of Ukrainian-owned start-ups are in Prague, a total of 1,733 between the beginning of the year and the end of September. This number accounted for 19% of all start-ups in Prague and 35% of all Ukrainian start-ups in the Czech Republic.
There were 625 Ukrainian start-ups in the Usti nad Labem Region and 432 in South Moravia. The distribution of new Ukrainian entrepreneurs is more even than in the past; the share of these businesses in Prague and Usti nad Labem has decreased significantly, while it has increased in the Zlin and Olomouc regions.
By sector, the construction industry has long been the most common among Ukrainians. From January to the end of September this year, 1,919 Ukrainians started businesses in the construction sector, representing a quarter of start-ups in this sector, and 39% of Ukrainian start-ups overall.
“Construction has long been a sector in which Ukrainians find employment. It is one of the few industries that do not require perfect knowledge of the local language, so it is possible to start a business in it as soon as you arrive in a foreign country “, Kamenickova said.
Ukrainians accounted for an even larger share (29%) of new businesses this year in the water management sector, but relatively few new businesses appear in this sector, so even low numbers can increase the percentage significantly. Out of a total of 124 new businesses in this sector this year, 36 of them were started by Ukrainians.
About 35% of Ukrainians starting businesses in the Czech Republic this year are aged between 18 and 30, and another third (36%) are in the 31-40 age group. Only 1% are people aged 61 and older. Overall in the Czech Republic, half of all new business owners are aged 18 to 30.