The National Bank of Slovakia says higher taxes, social insurance contributions and tougher enforcement have accelerated the decline.
The position of Slovakia's self-employed has deteriorated sharply in recent years, with many concluding that running a business is no longer financially worthwhile under the current conditions.
The trend has now been highlighted by the National Bank of Slovakia (NBS). In its latest economic forecast, the central bank notes that the number of sole traders has been falling for several consecutive quarters.
At the same time, the NBS says the decline has not yet led to a significant deterioration in overall employment. Many sole traders who closed their businesses have either switched to another legal form of business or taken paid employment.
"The bad news is that some of them have stopped earning additional income alongside their main activity, which will have a negative impact on their household incomes," the central bank said.
