BUCHAREST - Romania’s business landscape experienced a concerning shift in June 2025, with company exits surpassing new registrations for the first time in recent months, indicating potential stress in the entrepreneurial ecosystem.

The Churn Reality

June 2025 saw 11,765 while 12,601 companies exited the market through suspensions, dissolutions,. This resulted in a net loss of 836 businesses and a churn rate of 107.11% - meaning for every 100 new businesses created, 107 exited the market.

The health ratio, which measures registrations against exits,, indicating the business ecosystem is operating below the ideal 1:1 balance.

Monthly Decline in New Business Formation

Compared to May 2025,, suggesting a potential cooling of entrepreneurial activity as summer approaches.

Year-over-Year Context

Despite the concerning monthly trend,. This growth was primarily driven by a 76.65% surge in PFA registrations and an 11.29% increase in SRL formations.

Business Exit Patterns

The exit data reveals distinct patterns across different types of business closures:

• Deregistrations: 6,545 companies were removed from the business register,
• Dissolutions: 4,391 companies were legally dissolved, up 35.94% year-over-year
• Suspensions: 1,665 businesses temporarily suspended operations, increasing 22.88% from June 2024

Geographic Concentration of Business Stress

The capital region shows the highest concentration of business challenges. Bucharest led in all three exit categories:

• 231 business suspensions
• 874 dissolutions
• 1,270 deregistrations

Other counties experiencing significant business exits included Cluj, Constanța, Bihor, and Brașov, suggesting regional economic pressures may be affecting business sustainability.

Sector Stability and Vulnerability

The data reveals mixed fortunes across different sectors:

Stable Sectors:

• Wholesale and retail trade maintained the highest registration count at 11,942
• Transportation and storage showed strong growth with 11,855 registrations, up 41.18% year-over-year
• Professional, scientific, and technical activities remained robust with 6,810 registrations

Vulnerable Sectors:

• Hospitality (hotels and restaurants) saw a 5.89% decline in registrations
• Manufacturing registrations decreased by 6.81%
• Agriculture, forestry, and fishing experienced a significant 26.64% drop in new registrations

Entity Type Resilience

Individual entrepreneurs (PFA) demonstrated remarkable resilience with 3,676 registrations, representing a 76.65% increase from June 2024. Limited liability companies (SRL) remained the dominant business form with 7,677 registrations, growing 11.29% year-over-year.

Ecosystem Health Assessment

While the immediate data shows stress with exits exceeding entries, the broader trend suggests the business ecosystem remains fundamentally healthy. The net growth trend shows positive momentum at 33,907, indicating that over a longer period, new business formation continues to outpace exits.

The current month’s negative net growth may reflect seasonal patterns, administrative cleanups, or temporary market adjustments rather than a structural decline in Romania’s entrepreneurial capacity. The significant year-over-year growth in key business categories suggests underlying strength in the business formation pipeline.

Note: All data reflects business registration and lifecycle events through June 2025, with comparisons to previous periods based on available historical records.