As the KfW reports, there were fewer start-ups in both full-time and part-time employment: The number of full-time start-ups fell by 6 percent to 222,000, while part-time start-ups fell by 12 percent to 328,000. The start-up rate fell from 119 to 108 start-ups per 10,000 people aged 18-64.
“Start-ups are key drivers of structural and technological change”
“Hardly having temporarily made up for the Corona slump, start-up activity in Germany is unfortunately already declining again in 2022,”
says Fritzi Köhler-Geib, Chief Economist of the KfW.
"This is bad news for the German economy, because start-ups are key drivers of structural and technological change – and thus support the future viability of the entire economy. Especially with a view to the green and digital transformation, Germany needs new companies with fresh and innovative ideas. Rebuilding the entrepreneurial spirit therefore remains a fundamental challenge for which all political, social, and economic actors must pull together."
The proportion of new businesses founded to take advantage of a favorable business opportunity fell by 11 percentage points to 71 percent in 2022 compared to the previous year, making it the lowest level since 2018. Similarly, the proportion of new businesses founded due to a lack of better employment alternatives rose from 15 percent to 24 percent.
