Luxembourg issued over 12,000 business licenses in 2024, but Minister of the Economy Lex Delles warns that the surge may reflect crisis-driven entrepreneurship, not a booming economy.

In 2024, Luxembourg recorded approximately 12,500 requests for business permits, a 7% increase from the previous year and the highest number ever registered. However, Delles cautions against interpreting this as a sign of economic strength.

Only around 5,700 of those applications involved the creation of new businesses. The rest may reflect individuals setting up companies out of necessity, often in response to job loss or instability, rather than seizing genuine market opportunities.

The construction and housing sector, which has been hit hard by economic turmoil and a wave of bankruptcies, accounted for 40% of new craft businesses. This suggests some workers are turning to self-employment to avoid unemployment.

At the same time, the number of revoked, annulled, or invalidated business licenses reached 7,700 in 2024. Bankruptcies alone rose by 24% in one year, with 819 cases recorded. The retail sector was hit hardest, but craftsmanship also saw a noticeable rise in failures compared to 2023.