The number of businesses operating in Cyprus continued to rise in 2023, surpassing 125,000 for the first time, according to fresh data from the Statistical Service. The upward trend highlights the resilience and gradual expansion of the country’s business landscape, largely dominated by small and medium-sized enterprises (SMEs).

From 2018 to 2023, the total number of enterprises grew from 101,323 to 125,152 — a cumulative increase of nearly 24 percent. Growth rates fluctuated over the years, with notable expansions of 5.7 percent in 2019 and 6.5 percent in 2022, alongside a slowdown during the pandemic year of 2020, when the increase was limited to just 1.3 percent. The most recent jump of 4.5 percent in 2023 added more than 5,300 new businesses compared to 2022.

The structure of Cyprus’s economy remains overwhelmingly tilted towards very small firms. Last year, 94.8 percent of enterprises employed fewer than 10 people, while only 156 firms — or 0.1 percent of the total — had workforces of 250 or more. The intermediate categories accounted for just 5.1 percent of businesses.

Employment within enterprises also followed a steady upward trajectory over the past five years, with the exception of 2020, when the pandemic caused a 3.3 percent drop. By 2023, total employment in enterprises reached nearly 499,000 people, up 5.5 percent from the previous year. Small businesses (0–9 employees) accounted for 38.1 percent of total jobs, while large firms with more than 250 staff contributed 25.3 percent.

In terms of sectors, wholesale and retail trade, along with the repair of motor vehicles and motorcycles, continues to dominate the business map with 16,672 companies and 77,046 employees. Professional, scientific, and technical activities follow with 13,235 enterprises, and construction with 10,311. At the other end of the spectrum, mining and quarrying remains the smallest sector with just 46 businesses nationwide.

Employment distribution also reflects these trends, with accommodation and food services employing 57,041 people and public administration and defense accounting for another 55,067. Other significant employers include professional services (42,187), construction (39,078), and manufacturing (37,078).