During this period, the start-up intensity fell from 92 start-ups per 10,000 people of working age to 47. On average, the number of start-ups across all German regions fell by 4.3 percent annually between 2003 and 2019. However, the study found significant differences in the number of start-ups among the 401 districts and independent cities.
The number of new businesses founded in the city of Munich fell by an average of 5.39 percent annually between 2003 and 2019. The start-up intensity plummeted from 104.5 to 43.1. In the Munich district, however, the number of new businesses founded remained almost constant relative to the population: in 2003, 97.1 new businesses were founded per 10,000 inhabitants, compared to 96.7 in 2019.
Large regional differences in business start-ups
“Nevertheless, we observed a positive development in the annual rate of change in five regions: in the districts of Görlitz, Marburg-Biedenkopf and Teltow-Fläming as well as in the cities of Leverkusen and Mülheim an der Ruhr,”
says project manager Rosemarie Kay from IfM Bonn.
“Overall, the start-up intensity has developed better than average in around 40 percent of the districts.”
Regional differences have continued to increase over time. The so-called 1TP1408 coefficient of start-up intensity, calculated from the quotient of standard deviation and mean, rose from 0.19 in 2003 to 0.32 in 2019.
