Hungary sees rise in sole proprietorships as business structures shift

The number of active sole proprietorships in Hungary has reached over 578,000 as of late June 2026. According to data from company information provider OPTEN, this represents an increase of more than 30,000 in a single year and 21,000 in the first half of the year.

Over the past five years, the number of sole proprietorships has grown by nearly 19%, while the number of corporate entities has decreased by 7%. This shift marks a significant change in the country's business landscape; in 2024, for the first time, active sole proprietorships outnumbered corporate entities in Hungary.

Growth has been particularly concentrated in specific sectors, including transportation and logistics (55% increase), other services (40%), arts, sports, and leisure (36%), and education (31%). The trend is attributed to lower capital requirements, greater operational flexibility, and simpler administration. While the growth is nationwide, Budapest is experiencing a faster structural transformation than the rest of the country.

OPTEN expert Csaba Alföldi noted that while sole proprietorships offer flexibility and lower entry barriers, they may present limitations for organizations seeking large-scale growth or capital acquisition compared to corporate structures.