ICT (Belarus market)

2020

Belstat: ICT companies are the most "survivable" in Belarus

In September 2021, the National Statistical Committee of Belarus (Belstat) published a report on business demography. It provides statistical indicators of activity, "fertility," "survival," "mortality" and enterprise growth.

According to the statistics presented, in 2015, more than 300 new companies representing the information and communication technologies (ICT) industry appeared in the country. In 2020, over 200 companies "survived." The survival rate of such a business is estimated at 60.8%, which was the highest among other industries.

For comparison: the "survival rate" of industrial enterprises, as well as organizations specializing in professional, scientific and technical activities, was 57.7% and 57.2%, respectively, and these are the best results after the ICT business.

The level of "survival" of enterprises is determined by the percentage of the number of "born" and "survivors" in all subsequent years of enterprises to the number of "born." By "surviving" enterprise is meant a company that maintains a state of activity in the year of "birth" and in subsequent years.

By the end of 2020, there were about 105 thousand operating companies from the ICT industry in Belarus. Their share in the total number of enterprises was equal to 4%.

According to statistics, in 2020 in Belarus a decline in the registration of new companies was recorded. If in 2019 there were 9293 new enterprises in the country, then in 2020 - 7153. The decline was also recorded among active enterprises. In 2019, there were 106,916 such units, and in 2020 - 104 877. At the same time, there is no data on "deceased" enterprises for 2020 in the statistical bulletin. Therefore, it cannot be understood whether the mortality rate of enterprises exceeded their birth rate in the pandemic year (COVID-19^[1]

The number of unprofitable ICT companies increased by 2 times (up to 23), their total losses - 50 million Belarusian rubles

According to the National Statistical Committee of Belarus (Belstat), in 2020, 23 unprofitable companies operating in the information and communication technologies (ICT) sector were registered in the country. In 2019, the number of such firms was measured 11.

If the number of unprofitable ICT companies in Belarus has doubled, then their total losses - four times, up to 50 million Belarusian rubles in 2020.

In terms of total net profit of ICT companies, the ICT industry was in second place after the manufacturing industry. In 2020, the total net profit of Belarusian ICT companies increased by 36% and amounted to about 1.88 billion Belarusian rubles. The indicator of manufacturing enterprises is 2.78 billion rubles.

According to the National Statistical Committee, the number of unprofitable organizations in 2020 compared to 2019 increased from 935 to 1040 (by 11.2%), their specific gravity - from 13.6 to 15.1%. The net profit of organizations as of January 1, 2021 amounted to 6 billion 104.1 million rubles (a decrease of 42.6%).

According to Dev.by, official statistics do not fully reflect the financial situation in the "information and communications sector," including in IT companies. Belstat's calculations take into account the performance of only part of the large companies of the High Technology Park (PVT). More complete information about the total profit directly of IT companies with offices in Belarus ( excluding communications) will appear no earlier than May. Similar information on PVT residents, taking into account startups, will appear even later. By February 18, 2021, only the total net profit for IT companies for 2019 is known - 571 million Belarusian rubles, the publication said.

In 2020, against the backdrop of the political crisis in Belarus, part of the IT-Business was transferred to other countries. The impact of this relocation on the economy by February 18, 2021 has not been calculated. Exports of telecommunications, computer and information services only five years earlier had grown 2.5 times to one third of total exports of services in the country.^[2]

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