Number of start-ups falls to 550,000
According to the KfW Start-up Monitor, start-up activity in Germany fell by 9% in 2022 compared to the previous year, which can be attributed to a reduced economic impetus and a negative labor market effect that was twice as high.
The preliminary analysis of the current KfW Start-up Monitor shows that around 57,000 fewer people started their own business than in 2021. In total, there were around 550,000 start-ups in 2022. The decline in Germany extends to both full-time and part-time businesses. The number of full-time business start-ups fell to 222,000, which corresponds to a decrease of 14,000 or 6% compared to the previous year. The number of sideline start-ups also fell to 328,000 (-43,000).
Especially in view of the green and digital transformation, Germany needs new companies with fresh and innovative ideas
Dr. Fritzi Köhler-Geib, Chief Economist at KfW
Traditionally, most start-ups were new companies, while company takeovers and participations only accounted for 14%. The Start-up Monitor points to the economic challenge that many SMEs are looking for a succession solution and that this interest is offset by only a small number of company takeovers. The number of solo start-ups (only individuals, no teams) remained almost unchanged at 82%. On a positive note, the proportion of business start-ups by employers rose sharply from 21% to 34%.
The entire preliminary evaluation can be found free of charge in Volkswirtschaft kompakt No. 237
The KfW Start-up Monitor
The KfW Start-up Monitor is an annual survey conducted by KfW Bank in Germany. It surveys 50,000 randomly selected people to obtain information on start-up activity in the country. The survey covers various aspects of start-up activity, including whether someone is planning a full-time or part-time start-up, whether it is a new start-up or a takeover and whether it is a freelance or commercial activity. Thanks to this broad coverage of start-up activity, the KfW Start-up Monitor provides important insights into the development and trends of start-up activity in Germany.
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