Start-ups in Germany are not going according to plan since 2018. years.
More and more people in Germany decide to start their own business, but entrepreneurial activity is far below the level recorded 10 years ago, the KFW German State Bank explore.
The number of newly established companies in 2024. It increased by three percent compared to the previous year and reached 585,000. But that increase is not significant compared to the number of newly established companies 10 years ago, when there were more than 800,000, KFW pointed out.
More than 20 years ago, 2004, that figure reached almost 1.4 million newly established companies, Transfers index.hr.
“Despite the lower last year’s increase, I must admit that the start-up activity in Germany does not move in 2018,” Economist said specialized in start-ups in KFW Research Georg Metzger.
Increasing, the bank said, comes from people who launched jobs as a minor to ensure another source of income.
Harder situation in the labor market
Preliminary analysis of the KFW bank, published in its start-up monitor, showed that 115 out of 10,000 adults aged 18 to 64 have employed independently.
In 2023. The number of that figure was 110.
Eight of 10 entrepreneurs worked on his own, while only 25 percent of the very beginning employed employees.
In the survey, which included 50,000 people, the harder situation in the labor market is stated as the main reason for the recent gentle increase in the number of newly established companies.
Almost a third of the entrepreneur stated that they would actually rather be someone’s employees and that self-employment see only as a temporary opportunity to achieve greater revenues, realization of the business idea or encourage the progress of their own career.
