Less business start-ups in the construction industry, more in the health and social services sector
The Corona pandemic and its consequences for the economy and society have had different effects on business start-up activity in the various sectors of the economy. Support measures at the federal and state level lead to a decline in business start-ups.
In the construction sector, the number of start-ups fell by 23.6% in 2020 compared to 2019, although an increase in start-ups would have been expected due to the increased demand for construction. The main reason for this is probably the reintroduction of the Meisterpflicht in some trades at the beginning of the pandemic year. But restrictions on entry from abroad, especially in the spring of 2020, may also have made it more difficult for foreign entrepreneurs, who are strongly represented in this sector of the economy, to start their own business.
Due to the pandemic, the number of start-ups also fell in the hospitality industry (-20.6%), in other person-related services (-20.2%) and in the arts, entertainment and recreation sector (-19.7%). In contrast, the health and welfare sector recorded a significant increase in business start-ups of 21.3 %.
Overall, the number of business start-ups was 235,000, 11.7 % below the previous year’s figure. Since the number of business closures (224,000) even fell by 18.9%, a positive business start-up balance – the difference between business start-ups and closures – was recorded in 2020 for the first time since 2011. The initially expected wave of business closures in 2020 has not occurred due to the diverse support measures at the federal and state level.
Since 1973, the IfM Bonn has been calculating the numbers of business start-ups and closures from the basic population of business registrations. The figures from the business registration statistics of the Federal Statistical Office are corrected for non-start-up or liquidation-relevant components such as company moves, reorganisations or legal form changes.