In economically uncertain times, fewer company founders in Germany have dared to enter the market this year. This was announced today by the Federal Statistical Office.

Meanwhile, a survey by the Munich Ifo Institute showed that the current setbacks are significantly less worrying for established companies than the Corona crisis. "In view of the strong economic slowdown, the companies are proving to be very robust," sums up Ifo expert Klaus Wohlrabe today.

According to Ifo information, 7.5 percent of companies currently see their existence threatened. That is much less than during the hot phase of the Corona crisis: In June 2020, at 21.8 percent, almost three times as many companies felt threatened.

The number of start-ups is falling

However, the uncertain economic environment is holding back company founders. From January up to and including August 2022, the Federal Statistical Office counted a good 80,200 start-ups of companies whose legal form and number of employees indicate greater economic importance.

According to the Wiesbaden authority, that was 6.6 percent less than in the same period of the previous year, which was heavily influenced by the pandemic. In comparison to the first eight months of the pre-Corona year 2019, the number was 5.0 percent lower.

According to the Federal Office, around 58,000 companies with greater economic importance gave up their trade in the first eight months of the current year, 2.0 percent more than a year earlier.

Retail suffers from the consequences of inflation

According to the Ifo, concerns are currently particularly high in retail. There, 11.6 percent report an existence-threatening situation. "The current inflationary dynamics are causing retailers great concern," explains Ifo expert Wohlrabe.

Because energy and food have become drastically more expensive, many consumers limit their purchases to essential goods.

According to the Federal Statistical Office, the total number of business registrations from January to August 2022 inclusive fell by 5.3 percent to around 455,600 compared to the same period of the previous year. In addition to start-ups, takeovers, for example through purchases, as well as conversions and arrivals from other registration districts, were recorded.