In 2021, Cyprus saw a "birth" rate of new businesses at 10.2%, while the "death" rate of businesses was at 6.3%, according to data published by Eurostat, the statistical office of the EU. This data marks the first detailed recording of the "demographic" structure of businesses within the European Union.

Across the EU, the new business creation rate stood at 10.7%, and preliminary calculations for business closures indicated a rate of 8.5%. This suggests that in 2021, the EU experienced a net increase in new companies.

This trend was observed in most EU countries, where more businesses were created than dissolved. Exceptions included Estonia, Lithuania, Bulgaria, Poland, Denmark, and Germany, where business closures outnumbered startups.

The highest new business rates in the EU for 2021 were in Lithuania (20.2%), France (16.2%), and both Malta and Portugal (14.4% each).

The lowest rates were seen in Estonia (3.1%), Austria (6.0%), and Greece (7.2%).

Per Eurostat's findings, service sector companies, especially in education and arts, entertainment, and recreation, demonstrated significant dynamism, with new company birth rates exceeding 10% in 18 of the 27 member states.

The average number of individuals employed by new businesses in 2021 ranged from 0.4 in the Netherlands to 2.3 in Lithuania, with the EU average at 1.1 individuals. In Cyprus, the average was 1 individual.

Concerning business dissolution rates, which remain preliminary for several member states, the lowest were recorded in Greece (2.2%), Belgium (3.6%), and the Netherlands (4.2%).

Estonia reported the highest business "death" rate at 23.4%, followed by Lithuania at 22.6% and Bulgaria at 17.6%.