Upcoming Report: Young Female Entrepreneurs in Germany Leading the 2025 KfW Start-up Scene
Germany is witnessing a surge in youth entrepreneurship, with a record number of young individuals venturing into self-employment and digital businesses. Here's a comprehensive overview of the current and historical trends, factors contributing to this shift, and the challenges and opportunities that lie ahead.
Current Trends
Youthful Entrepreneurship
Post-pandemic trends show an increase in digital and internet-based start-ups, with more youthful entrepreneurs embracing self-employment. The median age of entrepreneurs in Germany has decreased to 34.4 years, marking a significant shift towards younger demographics [1].
Record Breaking Numbers
- 75 percent of entrepreneurs in 2024 relied solely on their own funds, a record high [1].
- The share of entrepreneurs aged 18 to 29 increased to 39 percent, the highest recorded value [1].
- 36 percent of businesses in 2024 were digitally based, marking a new high [1].
Historical Trends
Post-Pandemic Recovery
After the pandemic slump in 2020, start-up activity in Germany returned to pre-crisis levels in 2021, with a significant increase in digital and internet-based business start-ups [2].
Pre-Pandemic Trends
Historical data suggests that entrepreneurial activity in Germany has been increasing over time, with a focus on innovation and digitalization [4].
Factors Contributing to the Increase in Younger Entrepreneurs
Digitalization and Technology
The increased adoption of digital tools and technologies has made it easier for younger entrepreneurs to start and manage businesses. This includes the use of digital platforms for marketing, customer engagement, and overall business operations [2][3].
Educational and Training Initiatives
There is a growing emphasis on entrepreneurship education and training programs, which are encouraging younger individuals to pursue entrepreneurial ventures [3].
Economic and Social Factors
The economic uncertainty and the desire for independence and innovation are driving younger individuals to explore self-employment and entrepreneurship [2][3].
Government Support and Policies
Government initiatives and policies aimed at supporting start-ups, such as funding opportunities and business-friendly regulations, are also contributing to the increase in younger entrepreneurs in Germany [2].
Challenges and Opportunities
Challenges
Despite the growth, challenges such as fear of failure and lack of resources remain significant barriers for many young entrepreneurs [3].
Opportunities
The trend towards digital and sustainable entrepreneurship offers opportunities for young entrepreneurs to create innovative and impactful businesses, contributing to economic growth and social change [3].
Dirk Schumacher, Chief Economist of KfW, stated that the entrepreneurial spirit in Germany remains low overall. Schumacher attributed the low entrepreneurial spirit to a strong economy and the security of employee relationships. However, he predicts a slight increase in startup numbers for 2025 [5].
Older entrepreneurs have been decreasing in number, with those aged 40 to 49 making up only 16 percent in 2024, and those aged 50 to 65 making up only 12 percent [5]. Schumacher emphasized the importance of financial education, stating that more confidence in financial matters increases the likelihood of founding a business.
The share of female founders was 36 percent in 2024, with women more often pursuing time-limited self-employment (28 percent) than their male counterparts (17 percent) [5].
The KfW Foundation Monitor 2025 reported a total of 585,000 new businesses in 2024, a 3 percent increase from the previous year [5].
Sources: [1] KfW Startup Monitor 2024 [2] Bundesverband der Deutschen Startups (BVD Startups) [3] Deutsches Institut für Wirtschaftsforschung (DIW) [4] Statistisches Bundesamt [5] Dirk Schumacher, Chief Economist of KfW, in a press conference on February 15, 2025.
- The surge in youth entrepreneurship in Germany is evident in the decreasing median age of entrepreneurs to 34.4 years, with 39% of entrepreneurs falling between the ages of 18 to 29.
- In 2024, a record 75% of entrepreneurs relied solely on their own funds, while 36% of businesses were digitally based, highlighting the trend towards digital and internet-based start-ups.
- Economic uncertainty, the desire for independence and innovation, government support, and educational initiatives are key factors contributing to the increase in younger entrepreneurs in Germany.
- While challenges such as fear of failure and lack of resources persist for young entrepreneurs, opportunities for innovation and impactful sustainable entrepreneurship lie ahead.
