Every year, our analysts publish a statistical note on the business demographics in the Brussels-Capital Region. The report analyses business creations, closures, bankruptcies, relocations and entrepreneurial trends in order to gain a better understanding of the evolution of Brussels’ economic fabric.
The number of businesses continues to rise
In 2021, the Brussels-Capital Region had 115,541 VAT-registered businesses, compared with 108,243 in 2018. Despite this overall increase, the number of new business creations remains below pre-pandemic levels.
The number of start-ups in Brussels has risen by 2.5% compared with 2020, but remains 8.8% below the level recorded in 2018. The recovery appears to be more robust at national level, where business creations are up by 9.5% compared with 2020 and have slightly exceeded the level seen in 2018.
Entrepreneurial momentum remains subdued
Business closures in Brussels also rose by 2.5% in 2021. However, they are still 3.1% below the level recorded in 2018.
The similar rate of growth in business creations and closures limits the number of net creations. Their share of the total number of active businesses remains stable compared with 2020, but is down by 20.1% on 2018. Conversely, this indicator has risen for Belgium as a whole, compared with both 2020 and 2018.
The proportion of businesses based in Brussels out of the total number of businesses in Belgium has therefore fallen slightly, from 11.3% in 2018 to 10.8% in 2021.
Two sectors account for nearly half of Brussels’ net business creations
Entrepreneurial activity varies considerably from sector to sector. In Belgium, the construction and retail sectors accounted for nearly 30% of net business creations in 2021, compared with just 12% in Brussels.
In the capital, professional, scientific and technical activities, as well as the information and communication sector, play a much more significant role. Together, they account for nearly half of all net business creations in Brussels, compared with just under 30% at national level.
Certain sectors continue to be particularly hard hit by the consequences of the health crisis. The number of businesses operating in the retail and hospitality sectors has been falling since 2018. In contrast, education and healthcare are among the most dynamic sectors in 2021. The Brussels arts, entertainment and recreation sector also stands out with a higher entrepreneurial dynamic than that seen at the national level.
Bankruptcies on the rise again
The protective measures introduced during the health crisis have significantly reduced the number of bankruptcies since 2020. In Brussels, these figures remain 40% below their 2019 levels.
However, a recovery was observed in 2022. The number of bankruptcies has risen by 33% in the Brussels Region, compared with 42 per cent nationally. Almost 60% of declared bankruptcies are concentrated in three sectors: construction, retail and hospitality.
These bankruptcies led to 4,266 job losses in Brussels in 2022, 4.3% more than in 2021. However, their number remains 32.3% below the level seen in 2019.
Business migration deficit continues to widen
The Brussels-Capital Region still has a negative net migration balance. Between 2018 and 2021, this deficit widened as a result of an increase in the number of businesses leaving the Region, whilst the number of new businesses arriving remained stable. However, Flanders and Wallonia, recorded a migration surplus of more than 50% over the same period. Almost all sectors in Brussels are affected. Only the transportation and storage sector shows a slight increase, with eight more businesses over the period. The sectors most affected by businesses leaving and not offset by new arrivals are construction and professional, scientific and technical activities.
