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 with the previous year, due to a reduced economic stimulus and a double negative labor market effect.

The preliminary analysis of the current KfW Start-up Monitor shows, about 57,000 fewer people than in 2021 started their own business. Overall, there were around 550,000 start-ups in 2022. The decline in Germany covers both full-time and sideline businesses. The number of full-time startups fell to 222,000, a decrease of 14,000 or 6% compared with the previous year. The number of sideline startups also fell, to 328,000 (-43,000).

Particularly in view of the green and digital transformation, Germany needs new companies with fresh and innovative ideas

Dr. Fritzi Köhler-Geib, Chief Economist KfW

Traditionally, the majority of start-ups involved the establishment of a new company, while company takeovers and participations accounted for only 14%. The start-up monitor points to the economic challenge that many medium-sized companies are looking for a succession solution and that this interest is matched 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, there was a sharp increase in the proportion of start-ups by employers, 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 individuals 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- or sideline start-up, whether it is a start-up or takeover, and whether it is a freelance or commercial activity. Through 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.