Fewer bankrupt companies in Estonia for the second year in a row

Estonia is enjoying an era of economic prosperity – as shown by the fact that the share of bankrupt companies in 2017 remained at 0.16% for the second successive year. It was also low at the beginning of 2018, a trend that is likely to continue in the future.

In 2017, three larger companies operating in the wholesale sector went bankrupt, along with two in manufacturing, two in construction, two in transport and one in warehousing. Taking 2016 for comparison, seven large companies that went bankrupt operated in wholesale, two in motor fuel wholesale, two in sale of metals and one in wholesale trade services for food, alcohol and tobacco products.

In 2017, the highest level of bankruptcy was in the housing and food sector as well as in manufacturing, where bankruptcies per thousand companies were 4.3 and 3.5, respectively. The counties with the highest bankruptcy rate were Läänemaa and Ida-Viru County, with bankruptcies of 4 and 2.5 companies per thousand respectively, while the counties with the lowest bankruptcy rates were Lääne-Virumaa, Rapla and Järvamaa, where the bankruptcy rate was 0.3, 0.5 and 0.6 companies per thousand.

The average company that went into bankruptcy in 2017 had two employees, sales revenue of up to 0.2 million euros, and was a small business with almost no equity capital operating with losses. The average level of bankruptcy in 2017 was 1.6 per thousand companies.

Note: the best way to protect your own business is to understand your business partner and, in case of problems, contact a lawyer immediately.

Source: http://arileht.delfi.ee/news

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