Business Start-Ups in Germany – Strong Economy Leads to New Corporate Service Providers

In 2006, the number of companies offering corporate services increased considerably. Compared to the previous year, the number of start-ups in this economic sector rose by four per cent. The total number of start-ups in Germany, however, remained relatively constant with 252,000 new businesses in comparison with the previous year.

This is primarily due to the consumer-oriented service sector, in which the number of start-ups nearly stagnated at last year’s level. In the industrial sector, the count of new businesses remained constant as well while it decreased in trade and construction. These are the findings of the recent ZEW Gründungsreport, a biannual examination of firm foundation activities in Germany conducted by the Centre for European Economic Research (ZEW) in Mannheim.

This significant increase in start-up activities of corporate service providers in 2006 can be explained by the basically strong economy in the service sector. According to a survey of the German Chambers of Industry and Commerce (DIHK) from 2006, this sector’s assessment of the own economic situation by corporate service providers reached its highest level for years.

Although compared to the previous year, the number of new businesses in trade decreased by four per cent, this sector also shows positive tendencies. The number of start-ups in mail-order selling increased for the fourth time, this year by 34 per cent. This is primarily the result of the unrestricted appeal of online trade.

Contact

Dr. Georg Metzger

E-mail: metzger@zew.de