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Recent analyses show a significant increase in the so-called start-up intensity: This rose from 115 to 136 business start-ups per 10,000 people aged between 18 and 64. In total, this corresponds to approximately 690,000 founders – a significant increase compared to 585,000 in the previous year.
These are the results of a preliminary analysis of the KfW Start-up Monitor, a representative survey of the population. In 2025, approximately 30,000 telephone interviews and an additional 20,000 online interviews were conducted. The term "founders" is broadly defined: it includes people who have become self-employed, whether full-time or part-time, freelance or commercially, through a new business start-up, investment, or acquisition.
Secondary employment as a growth driver
The development in the area of part-time business start-ups is particularly striking. Here, the start-up rate rose from 75 to 95 per 10,000 people. This corresponds to approximately 483,000 part-time start-ups in 2025 – compared to 382,000 the previous year.
In contrast, the number of full-time start-ups remained largely stable. With a start-up rate of 41 per 10,000 people, around 206,000 full-time start-ups were recorded – virtually unchanged for the third year in a row.
As a result of this development, the share of part-time start-ups has reached a new record high: Around 70 percent of all start-ups are now undertaken as a secondary occupation.
Reasons for the increase
Despite economic factors, many founders consciously choose self-employment, starting their own businesses out of conviction. Around two-thirds generally prefer self-employment to permanent employment. This motivation is also widespread among those pursuing self-employment as a side hustle – and has even increased compared to the previous year.
A key motivation for many people to take up self-employment as a secondary source of income is the desire for additional earnings. In particular, rising living costs and increasingly difficult access to the job market contribute to self-employment being perceived more and more as a flexible income alternative.
“One possible reason for the sharp increase in part-time business start-ups is the rising cost of living,” says Dr. Dirk Schumacher, Chief Economist at KfW. “Access to the job market has become more difficult, and even small part-time jobs are no longer easy to find. Self-employment can be an alternative for supplementing one’s income.”
Structure of the startups
The startup landscape in Germany continues to be heavily dominated by individual startups:
- 86% of startups are founded by a single person.
- 24% of new companies employ staff.
- The majority of new businesses are founded through new ventures.
- Only about 10% are attributable to company acquisitions.
Business succession as an opportunity
Besides new business start-ups, the issue of business succession is gaining increasing importance. By the end of 2029, around 545,000 medium-sized companies will be looking for a successor. This presents a great opportunity for future entrepreneurs to take over existing structures and develop them further.
Conclusion
Current trends show that entrepreneurial activity in Germany is on the rise – particularly among part-time businesses. Besides economic factors, the desire for independence also plays a significant role. At the same time, business succession offers a still largely untapped opportunity for aspiring entrepreneurs.
Source and more: KfW, Economics Compact No. 261
