Growth Resumes in Companies Founded in Germany

May 2022

After a corona-influenced slowdown, people are starting their own businesses in Germany once again at a near pre-pandemic pace. That’s the conclusion of both the country’s economic development bank, the KfW, and the 2021-22 Global Entrepreneurship Monitor, which is supported the German Ministry for Economic Affairs and Climate Action.

According to the Monitor total early-stage entrepreneurial activity (TEA) rose by 6.9 percent in 2021, the second highest level ever after the 7.6 percent reached in 2019. The rate in 2020 was 4.8 percent.

In its annual report, the KfW found that 607,000 people registered as freelance in 2021, mostly by founding new commercial enterprises. That represented an increase of some 70,000 or 13 percent over 2020.

Both studies identified the same trends toward increasing numbers of young founders and female founders. The vast majority of those who found their companies do so because they see business opportunities, not because they have no better job options.

© Factory Berlin