Germany is witnessing a surge in self-employment and entrepreneurship, with 17,000 new business owners emerging in 2024 — a 3% increase, according to data from the state development bank KfW.
Remarkably, entrepreneurs are younger than ever, with 39% aged between 18 and 29, bringing the average founder age down to 34.4 years from 37–38 years in the early 2000s.
KfW’s chief economist Dirk Schumacher points out some challenges: “30% of startups fail within three years, and many never start their businesses at all due to fears of bureaucratic hurdles and financial risks.” Despite this, he sees the growth as a promising sign for Germany’s economy, noting the country’s historically low but rising propensity to launch new ventures.
In 2024 alone, sole proprietors, small businesses, and startups created 485,000 full-time jobs. A growing number of young Germans share this entrepreneurial spirit — 36% of those aged 18 to 29 say they would rather be self-employed than work as salaried employees. Additionally, more entrepreneurs are planning to launch additional businesses, signaling a dynamic and expanding startup culture.
