The number of new business startups in Germany has increased.
In the first six months of 2024, 325.300 new businesses were founded in Germany – an increase of 4,6 percent compared to the same period last year. These figures from the Federal Statistical Office may seem surprising at first glance, given that the country has been experiencing economic stagnation for three years, and European growth remains sluggish. However, experts explain the trend: In uncertain times, when many people lose their jobs, more individuals take the leap into self-employment, often as a Plan B or to pursue long-held dreams.
While the number of business closures also rose by 1,6 percent to 246.900 in the same period, startups still significantly outnumbered shutdowns. Notably, there was a 9.4 percent increase (67.600 new businesses) in companies with greater economic significance. These are not necessarily large employers but rather firms registered as GmbHs (limited liability companies) or partnerships, listed in the commercial register, or employing staff. However, 51.800 of these businesses also closed during this period – a 6,6 percent increase compared to 2023.
According to the KfW Start-up Monitor (June 2024), many businesses fail early: One-third of founders quit within the first three years, and only 61 percent remain active after five years. Another striking trend is that founders are now younger than ever, with an average age of 34,4 years. Despite the high dropout rate, KfW expects a slight rise in startup activity for 2024.
MK
