KfW Start-up Monitor 2014: Entrepreneurs in Germany notable for greater wealth of ideas

Frankfurt (ots) -

- New business formations create more jobs
- Number of part-time entrepreneurs rises substantially
- Start-up finance is easier to obtain: just under EUR 10 billion
used

Entrepreneurs in Germany are tackling more promising projects than
they did a few years ago. In 2013, for the first time more than half
of all entrepreneurs put into practice a specific business idea with
their business project (2013: 53%, 2012: 47%, 2011: 35%). Moreover,
in 2013 11% of entrepreneurs - almost three times as many as in 2009
- brought something new to supraregional markets. This means that
start-ups are more resourceful than ever - this was a key finding of
the KfW Start-up Monitor 2014, a representative annual population
survey of start-up activity in Germany. "Germany's entrepreneurs are
increasingly translating ideas into new offerings, they are looking
for an opportunity for sustained success - that is really good news",
said Dr Jörg Zeuner, Chief Economist of the KfW Group, at the
presentation of the report in Frankfurt today. "Entrepreneurs -
particularly those offering technological innovation - are an
important driver of our economy's steady and necessary renewal".

The gross employment effect of start-up activity has risen over
the past year - this, too, is a sign of increased sustainability.
Start-ups created 419,000 full-time equivalent jobs (+9%) and
recruited more employees. 27% of full-time start-ups began life with
employees, compared to only one in five full-time start-ups in 2005.

The number of start-ups in the past year came to 868,000 (+12%
against 2012). As we reported in February (see press release dated 18
February 2014; www.kfw.de/gruendungsmonitor2014), the increase was
attributable solely to a substantial rise in part-time entrepreneurs
(2013: 562,000; 2012: 460,000). "Rather than being driven by
'emergency start-ups', this increase in part-time start-ups is due to
the fact that entrepreneurs see a market for their business idea",
said Dr Zeuner. "Despite the generally moderate economy in 2013, it
would seem that they took advantage of the significant pick-up in
domestic demand".

Most entrepreneurs (2013: 83%) did not experience any financing
difficulties during the implementation of their start-up project (37%
because they had no funding requirement and 46% because they were
able to source own or third-party finance without any problems). The
financing employed by entrepreneurs came to just under EUR 10 billion
in 2013 (2012: EUR 8.4 billion, 2011: EUR 7.7 billion). The
percentage of third-party finance has risen from 31% in 2009 to 52%.
"The number of entrepreneurs who invest more funds at the outset and
therefore also require higher loans from their banks, for example,
has increased. Of course, this makes it necessary to focus in
particular on the financing conversation", said Dr Zeuner. "However,
obtaining finance is not an impossible task. Banks certainly provide
finance to convincing start-ups - particularly as the good
promotional policies in place mean that they are relieved of part of
what is without doubt a high risk".

Further key findings of the Start-up Monitor 2014:

- Never before have there been so many women among the start-up
entrepreneurs as there were in 2013; 43% of start-up projects
were initiated by women. As many women as men started their own
part-time business; one in every three full-time start-ups was
launched by a woman.

- Between 2011 and 2013 the German federal states' ranking by
start-up ratio has altered quite considerably when compared to
the period from 2008 to 2010, but Berlin remains in top place,
followed now by Hamburg, Rhineland-Palatinate and Hesse. At the
bottom of the ranking is Sachsen-Anhalt, which comes behind
Thuringia and Saxony. The pattern of "city states - western
German territorial states - eastern German territorial states"
remains clearly visible in the ranking (see also the chart for
download www.kfw.de/gruendungsmonitor2014).

Details on the study:

The KfW Start-up Monitor is a representative annual population
survey of start-up activity in Germany. It is based on a very
comprehensive start-up concept (full-time and part-time
entrepreneurs, commercial and self-employed entrepreneurs, new
business formations, company takeovers and participations in
enterprises) and provides an all-encompassing account of start-up
activity. The survey has been conducted since the year 2000. The 2013
survey period ran from 24 July to 5 December 2013.

Service:

The KfW Start-up Monitor 2014, a television interview with Dr
Zeuner, the press release of 18 February 2014 "Number of
entrepreneurs on the rise again in Germany", several charts for
download and information on KfW's funding and advisory offerings can
be found at www.kfw.de/gruendungsmonitor2014.

Contact:
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM), Sonja Höpfner,
Tel. +49 (0)69 7431 4306, Fax: +49 (0)69 7431 3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de