Less than half of all start-ups survive the first 5 years
Last year, a total of around 360,000 new companies were founded (commercial sector, liberal professions, agriculture and forestry). But during the first five years, many of the self-employed give up again, according to the latest figures from the IfM in Bonn on start-ups in 2017.
Approximately 360,000 new enterprise were founded in Germany in 2024. "It’s not just the number of start-ups that matters for an economy, but also their long-term survival", said Dr Rosemarie Kay, Deputy Managing Director at the IfM Bonn. Based on the recent data from the German Business Register, researchers at the institute regularly monitor the survival of newly established enterprise during their first five years. They found that 74 of the businesses founded in 2017 were still active after one year. With each additional year, the survival rate decreased continuously: after 5 years, it was only 38.1%.
Dr Rosemarie Kay constate: "Businesses with employees have slightly better chances of survival than those with no employees. After five years, just over 34% of non-employer start-ups were still in operation – compared to nearly half of those with employees."
Start-Ups in Health and Social Care Show Highest Long-Term Stability
The highest survival rate during the observation period was recorded for start-ups in the health and social services sector, followed by the manufacturing industry. The lowest survival rate was found in the arts, entertainment and recreation industry, where less than a third of the companies survived the first five years.
Weitere Informationen:
https://www.ifm-bonn.org/statistiken/gruendungen-und-unternehmensschliessungen/ueberlebensrate-von-unternehmen
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