KfW Start-up Monitor 2019: The declining number of new business start-ups has stabilized, falling by only 2 percent compared to the previous year.
The KfW Start-up Monitor is a representative study, which is conducted by the Kreditanstalt für Wiederaufbau (KfW) and maps the start-up activity in Germany. For this purpose, 50,000 people are surveyed annually by telephone.
Is an end to the downward trend in sight?
Between 2016 and 2017, the number of new business founders fell by approximately 17.11 percent, from 672,000 to 557,000. This negative trend has now slowed significantly. In 2018, 547,000 people began self-employment. This represents a decline of only 2 percent compared to the previous year. This could be due to the positive overall economic development in 2018.
KfW Start-up Monitor 2019: Increasing start-up activity among women
However, this positive development could also be due to the increasing number of women starting businesses. Compared to the previous year, the proportion of female start-ups increased by 4 percent to approximately 216,000. The main reason for women starting their own business is "independence" (49 percent), followed by "higher income" (15 percent) and "business idea" (13 percent).
Male start-up rates are declining
The number of male founders, however, is declining. In 2018, only 331,000 ventured into self-employment. This is 5 percent fewer than in 2017. The reasons for starting a new business are also weighted differently than for women. Only 35 percent of male entrepreneurs cite "independence." However, the argument "higher income" plays a comparatively more important role at 27 percent. The "business idea" also carries more weight in this group, at 20 percent.
Distribution of new businesses by federal state
The capital city of Berlin continues to lead the ranking of German states with the most new business start-ups, with 193 per 10,000 employed persons. Hamburg continues to follow in second place with 146 start-ups. Brandenburg is new to third place. The state benefits from its proximity to Berlin and, with 134 start-ups, has moved up from eighth to third place. Bavaria remains in fourth place in Germany as a whole, with 126.
