July 2025 Analysis Reveals Alarming Business Churn Rate Reaching 93%

BUCHAREST - Romania’s business landscape is showing dangerous signs of instability as July 2025 data reveals a staggering business churn rate of 93.02, with companies exiting the market at an unprecedented pace despite a surge in new registrations.

Registration Boom Masks Underlying Crisis

The country recorded 15,168,. However, this apparent growth hides a much darker reality.

The business ecosystem is hemorrhaging companies at an alarming rate, with 14,109. This includes 7,144, 5,136, and 1,829.

Entity Type Breakdown Shows Concerning Trends

The registration surge was led by SRL companies with 10,832, up 110.58% year-over-year. PFA registrations jumped to 3,886, representing a staggering 148.62% increase.

However,,. Three entity types - SC, RA, and GIE - recorded zero registrations, down from 7 combined registrations in July 2024.

Regional Disparities Highlight Economic Fragility

Bucharest led with 3,172,, raising questions about the sustainability of such rapid expansion.

Industry Concentration Creates Systemic Risk

The business landscape shows dangerous concentration in just a few sectors. Wholesale and retail trade dominated with 14,213, followed closely by transport and storage with 14,065.

Several key industries showed concerning declines. Agriculture, forestry,,.

Lifecycle Events Signal Deepening Crisis

The year-over-year comparison of business exits reveals a catastrophic trend. Dissolutions surged by 104.05,. Deregistrations jumped by 58.58.

Net Growth Barely Positive

Despite the massive registration numbers, net business growth was a mere 1,059, indicates that for every company exiting the market, only 1.08 new ones are entering - a precarious balance that could easily tip into negative territory.

Economic Implications

The data suggests Romania’s business environment is becoming increasingly volatile. The high churn rate indicates businesses are struggling to establish sustainable operations, while the concentration in specific sectors and entity types creates systemic vulnerabilities.

Experts warn that the current registration boom may represent speculative activity rather than genuine economic growth, with many new businesses likely to face the same fate as the thousands exiting the market each month. The dramatic increase in dissolutions and deregistrations points to underlying economic pressures that could trigger broader market instability if left unaddressed.

This analysis is based on official business registration and lifecycle data through July 2025. The alarming trends suggest Romanian entrepreneurs face increasingly challenging conditions despite the apparent registration boom.