welt.de
German Business Startups Rise Slightly, But Trend Remains Sideways
Germany saw a 3 percent rise in business startups in 2024, reaching 585,000, but this follows a sideways trend since 2018, with many founders preferring part-time ventures due to a difficult job market; however, the number of businesses closing still outnumbers new ones.
- What is the current state of business startups in Germany, and what are the immediate implications of the recent 3 percent increase?
- The number of new businesses in Germany increased by 3 percent in 2024, reaching 585,000, yet this represents a continued sideways trend since 2018. While 115 out of every 10,000 people aged 18-64 started businesses, this is down from approximately 800,000 a decade ago and 1.3 million two decades prior. A significant portion (31 percent) of founders prefer employment, viewing self-employment as a stepping stone.
- What factors contribute to the observed trend, and how does the nature of these startups (e.g., part-time vs. full-time) influence the overall economic impact?
- The increase in business startups is partly attributed to a tougher job market, with many entering self-employment as a means to improve their career prospects. However, two-thirds of new businesses operate as side hustles alongside existing jobs, indicating a preference for supplementary income rather than full-time entrepreneurship. The number of full-time startups slightly decreased.
- What are the long-term implications of the low number of business acquisitions and the persistent preference for part-time entrepreneurship, and what policy interventions could foster a more dynamic entrepreneurial environment?
- Despite a slight uptick, Germany's entrepreneurial activity remains below pre-2018 levels, indicating a persistent challenge in fostering a robust startup culture. The significant number of founders operating part-time, coupled with the low percentage acquiring existing businesses (17 percent), highlights a potential need for policy measures to incentivize full-time entrepreneurship and business acquisitions, addressing the substantial successor shortage.
Cognitive Concepts
Framing Bias
The headline and introduction focus on the increase in startups in 2024, creating a positive framing that contrasts with the overall negative trend since 2018. By emphasizing the year-on-year increase, the article downplays the more significant long-term decline. The repeated references to the increase, especially in the introduction, creates a sense that the situation is improving despite the larger context suggesting otherwise. While the article includes the statistic on the long-term decline, its placement and emphasis are less prominent than the positive aspects of the short-term increase.
Language Bias
The language used is mostly neutral, but the phrasing around the increase in startups ('slight Zunahme', 'leichte Zunahme') could be interpreted as downplaying the significance of this increase when viewed in the context of the overall declining trend. Similarly, describing the increase as delivering "Indizien für eine neu entflammte Liebe zur Selbstständigkeit" ('evidence of a newly ignited love for self-employment') is a subjective and potentially loaded phrase. More neutral wording would improve the objectivity of the report. Replacing 'neu entflammte Liebe' with a more neutral phrase like 'increased interest' would improve neutrality.
Bias by Omission
The article focuses on the increase in start-ups in 2024 compared to 2023, but omits a detailed analysis of the reasons behind the overall decrease in start-ups since 2018. While mentioning the difficult job market as a factor, it doesn't explore other potential contributing factors, such as economic conditions, access to funding, or regulatory hurdles. This omission limits the reader's understanding of the broader trend and prevents a more comprehensive assessment of the situation. The article also omits data on the types of businesses being created, potentially missing crucial information about their growth potential and economic impact. The lack of a comparison to other countries' startup rates further limits the analysis.
False Dichotomy
The article presents a somewhat false dichotomy by highlighting the increase in startups in 2024 against the backdrop of a long-term decline. While the slight increase is presented as potentially significant, the context of the overall downward trend is not adequately emphasized, leading the reader to potentially overestimate the importance of the recent rise. The article also implies a contrast between those who want to be employed and those who want to be entrepreneurs, but fails to explore the potential overlap between these preferences.
Sustainable Development Goals
The article reports a 3% increase in business startups in 2024 compared to 2023, indicating growth in entrepreneurial activity and potential job creation. While still below pre-2018 levels, this signifies some positive movement towards economic growth and improved employment opportunities. The increase is partly attributed to a more challenging job market, suggesting that entrepreneurship is serving as a response to employment difficulties.