In the year 2023

Total of 5 386 enterprises were born, while 3 805 ceased operations 

The Regional Directorate of Statistics of Madeira (DREM) releases today the final data on the demographics of enterprises headquartered in the Autonomous Region of Madeira for the period 2018–2023, classified by sector of the Classification of Economic Activities (CAE-rev.3) and legal form. This information originates from the Integrated Business Accounts System (SCIE) of Statistics Portugal (INE).

In 2023, a total of 5 386 enterprises were born in the ARM, reflecting a 4.9% increase compared to 2022. Of these, 16 belonged to the financial sector and 5 370 to the non-financial sector. Of the total, approximately three in every four were individual enterprises, while one in four were companies.

The birth of individual enterprises saw a 3.5% increase compared to 2022, whereas the birth of companies went up by 9.6%.

The proportion of surviving enterprises one year after establishment stood at 76.1%, 0.3 percentage points (pp) lower than in 2022. The survival rate of companies (92.6%) continues to be much higher than that of individual enterprises(71.2%).

It is estimated that 3 805 enterprises ceased operations in 2023, marking a 3.5% increase compared to the previous year. However, this increase remained lower than both the number and growth rate of newly created enterprises.

72.5% of non-financial enterprises born in 2022 remained active in 2023 

In 2023, a total of 5 370 enterprises were born in the ARM, representing 250 more enterprises (+4.9%) than in the previous year. At the national level, the number of newly created non-financial enterprises grew by 6.3% compared to 2022.

The enterprises born in 2023 created 6 203 jobs and generated a turnover of 141.5 million euros.

The employment creation rate, calculated as the ratio between the number of employees in newly created enterprises and the total employees, was 6.3% in 2023, 0.1 pp higher than in the previous year.

The birth rate of non-financial enterprises headquartered in the ARM was 15.9%, similar to the rate observed in 2022 (16.0%).

Regarding enterprise survival, 76.0% of enterprises born in 2022 remained active in 2023. For enterprises born in 2021, the survival rate was 60.1%.

In 2023, an estimated 3 790 enterprises ceased operations (+3.6% compared to 2022), resulting in the loss of 4 105 jobs and a decline of 78.8 million euros in turnover.

The job loss rate, measured as the ratio between employees in enterprises that died and total employees, stood at 4.2%, 0.4 percentage points lower than in the previous year.

That year, the mortality rate reached 11.3%, which was higher than in 2022 (11.4%). The mortality rate for individual enterprises (14.9%) was significantly higher than that for companies (4.5%).

In 2023, there were 196 high-growth companies, representing a 48.5% increase compared to 2022. These companies accounted for 15.4% of all non-financial companies with 10 or more employees in the ARM, compared to a national share of 12.5%. They were responsible for 26.9% of total employment, 22.0% of turnover, and 22.4% of gross value added (GVA) among this group of enterprises. Nationally, the corresponding shares were 19.3%, 14.5%, and 18.4%, respectively.

These high-growth companies employed 13 936 persons (+35.3% compared to 2022), generated a turnover of 1.29 billion euros (+22.8%), and contributed 462.1 million euros in GVA (+21.2%).

The number of young high-growth companies, known as "gazelles", increased from 16 in 2022 to 17 in 2023. However, despite this increase, the total number of employees declined by 33, resulting in a workforce of 840 persons in 2023. The turnover of these "gazelle" enterprises decreased by 7.9%, reaching 52.3 million euros.

The GVA of these 17 "gazelle" enterprises in the ARM stood at 24.6 million euros, marking a 22.1% decline compared to 2022.

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