July 10, 2024

KfW-Gründungsmonitor 24 at a glance

KfW-Gründungsmonitor 24 at a glance

We are excited to present the key findings from the latest KfW Start-up Monitor 2024. The number of new start-ups in Germany increased slightly in 2023 after a significant decline in the previous year. A total of 568,000 people ventured into self-employment, representing a 3% increase.

Notably, there are varying trends between full-time and part-time start-ups. While the number of full-time start-ups fell by 8% to 205,000, part-time start-ups rose by 11% to 363,000. Additionally, the proportion of female founders reached a new high of 44%.

However, the overall willingness to start a business is declining. The planning rate, which represents the percentage of people actively planning a start-up, dropped from 4.5% in 2022 to 3.6%. Only 2.2% of respondents plan to start a business within the next twelve months.

Dr. Fritzi Köhler-Geib, Chief Economist at KfW, explains: “In 2023, there were hardly any economic stimuli for start-ups. Both the economy and the labor market stagnated. For 2024, the macroeconomic environment is also expected to provide little support, which could lead to a further decline in start-up activity.”

It is also interesting to note the regional distribution of preferences for self-employment. The highest preference is in Hamburg (29%), while Saxony-Anhalt has the lowest (18%).

The biggest hurdles to starting a business remain financial risks, bureaucratic obstacles, and lack of income and social security. These barriers need to be addressed to promote start-up activity.

In summary, the KfW Start-up Monitor shows that the service sector continues to dominate start-ups (70%), followed by trade (22%) and manufacturing (9%). Digital and internet-based start-ups play a significant role, accounting for 22%. Financing is predominantly from personal funds (70%), while 21% rely on external capital.

The sustainability of start-ups remains a challenge: within the first three years, about one-third of founders cease their activities. After five years, 60% are still active. Personal reasons, such as family burdens or dissatisfaction with income, are common reasons for discontinuation.

The full KfW Start-up Monitor is available here: www.kfw.de/gruendungsmonitor

In this article:
We are excited to present the key findings from the latest KfW Start-up Monitor 2024. The number of new start-ups in Germany increased slightly in 2023 after a significant decline in the previous year. A total of 568,000 people ventured into self-employment, representing a 3% increase.
Share on social media:
Facebook
Twitter
LinkedIn
Telegram