The KfW Start-up Monitor shows that there are fewer and fewer start-ups in Germany. At the same time, the capital requirements of new companies are increasing.
The strong economy and the relaxed labor market continue to put pressure on the start-up rate: The KfW Start-up Monitor has never measured fewer start-ups in Germany. Only 672,000 people founded a business last year. In 2015, the number was 763,000. The start-up rate, i.e., the proportion of new business founders among the population aged 18-64, fell accordingly from 1.5 to 1.3.
Encouragingly, the number of "emergency start-ups" declined particularly sharply: In 2016, only 166,000 people (2015: 207,000) became self-employed due to a lack of employment alternatives. The share of digital start-ups remained stable at just over a fifth of all business start-ups compared to the previous year.
Dr. Jörg Zeuner, Chief Economist of the KfW Banking Group, commented:
“Overall, we cannot be satisfied with only 672,000 founders in Germany.”
More and more founders need external capital
The proportion of founders who raised at least 25,000 euros in external capital has doubled since 2013 to 101,000,000 euros.
“Start-ups are clearly becoming more capital-intensive,”
says Zeuner.
“It is therefore all the more important that good business ideas of the relatively few founders do not fail due to lack of financing.”
For 2017, the KfW an end to the decline in the start-up rate.
