Historic low in interest in start-ups

The DIHK Report 2024 reveals a historically low rating for Germany as a start-up location. Start-ups and young entrepreneurs see an acute need for action on bureaucracy and costs

Berlin, August 2024 - The latest "Business Start-ups 2024" report from the German Chamber of Industry and Commerce (DIHK) paints a bleak picture for Germany as a start-up location. In the survey of almost 1,000 prospective founders, they gave the location an average score of 3.6 - barely adequate. This means that the location rating has reached a historic low, having already been rated as merely satisfactory in previous years.

I am very worried about our location

Peter Adrian, DIHK President

The DIHK sees this as an alarming signal for Germany as a business location. It is particularly worrying that the decline in interest in start-ups cannot be explained by demographic factors alone. Rather, a sharp rise in operating costs and an opaque network of bureaucratic regulations are stifling the desire for entrepreneurship.

Bureaucracy & tax law are the biggest hurdles

In addition to the economic uncertainties, the IHK start-up consultants cite a high level of regulation and costs as the biggest hurdles. Although the situation is being positively influenced by increased demand for start-up advice, many founders see no prospects without better framework conditions. In particular, respondents called for faster and simpler regulations, simplified tax law and better access to public funding.

The DIHK is therefore calling for decisive action from politicians. A reduction in bureaucracy, tax relief and the targeted promotion of innovation are essential in order to make the location attractive again in the long term.

The entire Start-up 2024 report can be downloaded from the downloaded from the DIHK website can be downloaded.