Business Demography

The article looks at the demographic evolution of Belgian companies in the period from 2001 to 2012. The analysis concerns only those companies which, due to their legal structure, are obliged to file annual accounts with the Central Balance Sheet Office. These are Belgian companies in which the liability of shareholders or partners is limited to their investment. This approach makes it possible to obtain a clear picture of the evolution of both SMEs and large companies, excluding the impact of self-employed persons. First, the study looks at the trends in the total number of establishments, bankruptcies, dissolutions and liquidations between 2001 and 2012. These data are then compared to the total number of active companies in order to establish the actual evolution. This also makes it possible to gain an impression of business dynamics and of the development phase of the economy in a particular period. In addition, it provides an overview of the net number of establishments and bankruptcies and the influence of the economic cycle on demographic developments. This is followed by a geographical analysis of the establishments, bankruptcies, dissolutions and liquidations, in order to chart the process of economic development and dynamics in a certain region. The study is carried out at local, provincial and district levels, chiefly in order to establish the regions in which business dynamics are concentrated and to identify whether significant shifts have occurred during the past ten years. Lastly, the article considers whether the year of establishment has an effect on the average survival rate of companies. A regional and sector-based analysis should make it possible to see whether the survival rate is higher in some regions or sectors than in others, and an age-related check explores whether companies of a certain age are more likely to go bankrupt than younger or older companies.