Belgians reluctant to start their own business due to geopolitical uncertainty
Although a record number of new sole proprietorships and companies were established in Belgium in 2024, the first quarter of this year saw a 12.75 per cent decline compared to the same quarter last year. Based on preliminary figures, the decline in the number of start-ups is expected to continue in the second quarter of 2025. That shows the new “Starters Atlas” by market analysis firm GraydonCreditsafe and the employer organisations Unizo and UCM.
According to Eric Van den Broele, director of research and development at GraydonCreditsafe, the decline in the number of start-ups recorded at the beginning of this year is probably due to the current geopolitical context. “The sharp decline in the number of start-ups in the first half of 2025 is probably mainly due to global uncertainty, with figures such as Donald Trump, Vladimir Putin and Benjamin Netanyahu,” he said. “Everyone expects further shocks to follow.”
"Start-ups are wondering whether they will be able to demonstrate the necessary resilience"
As a result, Belgians seem to have become more reluctant to start their own businesses. “Entrepreneurship involves risks, and start-ups are therefore wondering whether now is the right time to start a business and whether they will be able to demonstrate the necessary resilience,” said Van den Broele. “On the other hand, you see that those who are starting a business now are already taking potential shocks into account and are therefore better equipped to start.”
Brussels phenomenon
In 2024, 127,171 new businesses were set up in Belgium, an increase of 6.3 per cent compared to 2023 and a new record number. However, this increase is almost entirely due to a temporary phenomenon in Brussels, as analysed by VRT NWS.
In the Brussels-Capital Region, the number of entrepreneurs rose spectacularly last year, by 31.5 per cent. This increase is partly due to the relaxation of Brussels regulations. Since the beginning of 2024, it is no longer necessary in Brussels to demonstrate basic business management skills in order to start a business. The obligation to demonstrate professional competence for a number of activities, such as butcher-wholesaler and massage specialist, has also been abolished.
"This should send a clear warning signal to our government"
Last year, 107,112 companies also ceased their activities, which is a record number as well. Because of this, the net growth amounts to just 1.52 per cent. “This low net growth, combined with the fact that several sectors are experiencing a negative trend, should send a clear warning signal to our governments,” declared Van den Broele.
Illustration © PHOTO IMAGEBROKER
Related news
