Would you like to do business in Hungary? These are the most risky businesses

According to turizmusonline.hu, the number of liquidations dropped by nearly half in 2015 compared to 2014, and it resulted in the significant decline of the defaulting rate of Hungarian businesses as well. The list of risky industries also changed, because now accommodation services leads the list and is followed by food production and construction industry.

The number of forced cancellations decreased in 2015. This process is launched when, for example, a company cannot be found at its headquarters, the enterprise did not file statements, or comply with tax obligations. More than 42 thousand of these procedures were initiated in 2014, but this number was only 31 thousand in the last year.

Proportionally, most cancellations happened in the wholesale, the accommodation services and the administrative services. In these areas the defaulting rate is also high, which means that these industries are seriously affected by insolvency.

At country level, compared to the number of firms, most forced cancellations were launched in Budapest, Pest county and Komárom-Esztergom county. The rate exceeded 6% of the total number of the companies, turizmusonline.hu wrote. Zala, Tolna, Vas and Bács-Kiskun counties were the least-affected areas with a proportion under 2%.

The number of liquidations decreased from 17.500 in 2014 to 10 thousand in 2015. The number of voluntary dissolutions also dropped last year. There were less than 8 thousand final settlements in 2014 and in 2015, too.

According to turizmusonline.hu, the least risky industries have long been private healthcare and private education. In 2015, engineering and chemical industries were also included on the list.

Construction industry was the most risky industry for years, but accommodation services and food production overtook it in 2015.

Copy editor: bm

Source: http://www.turizmusonline.hu