KfW study: After Corona dent, more founders again | Free press

For years, fewer and fewer people in Germany have dared to become self-employed. Last year’s reversal of this trend has a lot to do with the pandemic, according to research.

Frankfurt am Main.

After a pronounced dent in the Corona, more people in Germany went self-employed again last year.

Also because many projects were halted in 2020, the number of catch-up start-ups rose again by 70,000 (13 percent) to 607,000, the state-owned banking group KfW in Frankfurt said on Monday.

At 42 percent, the proportion of women was higher than ever, according to a KfW startup monitoring report. A particularly large number of young people were willing to start a business at their own risk. The average age of the founders has dropped to 35. During the pandemic, digital business ideas also dominated more than ever: 41 percent of start-ups were internet-driven and 31 percent of founders expected their customers to use digital technology. 85 percent of new businesses have sprung up.

development at a low level

KfW chief economist Fritzi Köhler-Geib called this development “encouraging”. However, you are moving at a very low level that is far from the highs of the early 2000’s. In 2003, there were nearly 1.5 million start-ups. In addition to a strong job offer, demographic development plays a major role in the lack of entrepreneurial spirit. “We are an aging society and the desire for professional independence decreases with age,” explained Köhler-Geib. A fast start-up is actually desirable from an economic point of view as it stimulates competition.

The founders of 2021 also had good reasons to take a step: according to KfW Monitor, 82 percent thought they had found a good business opportunity (2020: 80 percent). As the authors explain, such “occasional start-ups” are on average more stable and create more new jobs. Only 15 percent. founded a company because they saw no better alternative for themselves.

Based on past experience, around 30 percent of all founders quit after three years and 40 percent after five years. According to the KfW research, personal considerations played the decisive role most often. The biggest barriers to starting a business are therefore financial risk and financial difficulties, as well as the lack of benefits from employment. (dpa)

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