Business activity across the European Union showed clear signs of momentum—and strain—at the end of 2025, with more companies being created
but also more shutting their doors.
In the fourth quarter of 2025, new business registrations in the EU rose by 0.5% compared with the previous quarter. At the same time, bankruptcy declarations increased by 2.5%, highlighting the uneven pressures facing different parts of the economy.
The latest figures come from data released by Eurostat, which tracks quarterly trends in business creation and insolvencies across member states.
Start-ups gain ground, led by digital sectors
Overall, business registrations increased in five of the eight major sectors of the EU business economy during the final quarter of the year.
The strongest growth was seen in the information and communication sector, where registrations jumped by 6.4%, reflecting continued demand for digital services, software, and data-driven businesses. Industry followed with a solid 4.9% increase, while accommodation and food services also recorded growth of 1.3%.
Not all sectors shared in the upswing. Trade saw a slight decline of 0.3%, while construction and transport both edged down by 0.1%, suggesting more cautious investment in these areas.
Bankruptcies rise sharply in hospitality
While more businesses were being created, financial pressure intensified elsewhere. Bankruptcies increased in six out of eight sectors in the fourth quarter.
The sharpest rise was recorded in accommodation and food services, where insolvencies surged by 8.6%, underlining ongoing challenges for hotels, restaurants, and cafés. The information and communication sector also saw a notable increase of 7.9%, followed by transport, up 5.6%.
In contrast, bankruptcies declined in trade (-3.4%) and finance (-0.7%), offering some signs of stability in those sectors.
A mixed end to the year
Taken together, the figures paint a picture of a dynamic but fragile EU business landscape at the close of 2025. While entrepreneurial activity continued to grow, rising bankruptcies suggest that higher costs, shifting demand, and tighter financial conditions are still weighing heavily on many companies—particularly in consumer-facing industries.