The Cypriot economy continues to show steady growth, and one of the key indicators is the number of active companies. According to the Statistical Service of Cyprus, in 2023 the number of registered companies exceeded 125,000 for the first time, up 4.5% compared to 2022. While there were 119,816 companies in 2022, the figure rose to 125,152 in 2023.
Dominance of Small Businesses
The backbone of Cyprus’ business environment consists of small and micro-enterprises. In 2023, 94.8% of all companies employed fewer than 10 people, indicating that the island’s entrepreneurial ecosystem is largely built on small firms, family businesses, and individual initiatives.
However, there is another side: only 156 companies, or 0.1% of the total, employed more than 250 people each. These large employers accounted for 25.3% of total employment, highlighting a balance between a vast number of small businesses and large corporations that play a strategic role in the economy.
Employment Dynamics
The total number of people employed in Cyprus’ business sector in 2023 reached approximately 499,000, a 5.5% increase over 2022. The only recent exception was 2020, when employment declined by 3.3% due to the COVID-19 pandemic.
Micro-businesses with up to 9 employees provided 38.1% of all jobs, while enterprises with over 250 employees accounted for 25.3%. These figures underscore the importance and resilience of small enterprises, despite their smaller scale.
Leading Economic Sectors
The sector with the largest number of registered companies remains trade, including wholesale and retail, as well as car and motorcycle repair. In 2023, there were 16,672 companies in this sector.
The second-largest sector was professional, scientific, and technical services with 13,235 organizations, followed by construction with 10,311 companies.
In terms of employment, trade again leads with 77,046 employees, followed by the hotel and restaurant sector with 57,041, and public administration and defense with 55,067. The least developed sector is mining and quarrying, which had only 46 active enterprises in 2023.
Prospects for Cypriot Business
The growth in the number of companies and jobs confirms that Cyprus’ economy is actively developing, despite global challenges. The prevalence of small businesses provides flexibility and resilience, while large companies ensure stability and a significant contribution to employment.
For investors and entrepreneurs, Cyprus remains an attractive destination, offering favorable tax legislation, strategic location, and stable demand in key sectors.