BERLIN (Dow Jones)–Start-up activity in Germany took a hit last year. The number of business start-ups fell last year by 57,000 to 550,000, according to a survey for the KfW start-up monitor. This corresponds to a decline of 9 percent compared to 2021. Back then, the willingness to start up was even higher, because 70,000 companies were founded.
“Hardly had she made up for the Corona kink for a short time when start-up activity in Germany is unfortunately already declining again in 2022,” said Fritzi Köhler-Geib, chief economist at KfW. “This is bad news for the German economy, because start-ups are key drivers of structural and technological change – and they 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, says the economist.
Last year, the decline in part-time start-ups was greater than in full-time start-ups. The number of full-time start-ups fell to 222,000, which was 14,000 (-6 percent) fewer than in 2021. According to KfW, the decline in part-time start-ups is even greater, falling by 43,000 to 328,000 (-12 percent).
The start-up rate fell to 108 start-ups per 10,000 people aged 18-64 (2021: 119), according to the state-owned development bank KfW.
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(END) Dow Jones Newswires
April 04, 2023 05:32 ET (09:32 GMT)