The effect of the coronavirus pandemic on the plans of entrepreneurs setting up new companies in Germany has been far less than many feared. That’s the conclusion of a new study carried out by business data provider creditreform and the Leibniz Centre for European Economic Research (ZEW).
Some 165,000 new businesses were founded in Germany in 2020, essentially the same number as the year before. While the study found that there was a significant drop in the early months of last year, as Germany went into its first corona lockdown, a disproportionate number of new companies were established in the summer and fall and in December.
“Obviously, in the period of the greatest restrictions, many projects were suspended but not canceled, and they were resumed later in the year,” explained study author Sandra Gottschalk.
Germany’s strength in this area is a long-term phenomenon. In a study by business consultants McKinsey of the 1000 most successful European start-ups since the turn of millennium, Germany ranked second behind only the United Kingdom. German start-ups also tended to be larger, more valuable and better able to attract capital from investors than the European average, McKinsey found.