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The number of startups is decreasing, their quality is increasing

The job market is booming and this is having a negative effect on risk tolerance: the number of startups fell by 17% in 2017 compared to the previous year. The structural quality of the startups has nevertheless increased.

12 Jun. 2018 David Schahinian
Source: KfW
Source: KfW

This was reported by the KfW Start-up Monitor . Overall, 557,000 people took on the risk of becoming self-employed last year. Even though this figure was much lower than in 2016, economically important startups are showing a positive trend, according to KfW. The proportion of so-called opportunity founders, who want to realize their business idea, rose by 8%, while the comparable figure was even 31% for innovative founders. These startups, in particular, are an essential job engine for the future, says Jörg Zeuner, chief economist of the KfW banking group.

A closer look at the statistics shows that Berlin is ranked higher than Hamburg when it comes to founding new companies. The proportion of women has dropped by 3 points to 37%. 14% of founders had financing problems - usually because they would like to have invested more equity capital in their company. KfW's has a mixed forecast: they note a lack of incentives to stimulate startup activity at this time.

These could possible be supplied by an unexpected source: On the same day as KfW, the German Productivity and Innovation Center (RKW) published its study SMEs meet Startups 2018 , according to which, although more than 70% of SMEs can imagine cooperating with startups, only 38% are currently doing so - a potential that could be exploited to their mutual benefit.