4.11.2025 - According to the DIHK Report Business Formation 2025, Germany as a business formation location continues to lose attractiveness. Nearly six out of ten founders are now dissatisfied with the framework conditions for business formation and entrepreneurship.

This marks an increase of seven percentage points compared to the previous year. Meanwhile, the proportion of those very dissatisfied has almost doubled over the last two years. The current judgment from founders and young companies is even worse than during the coronavirus pandemic. As a result, interest in business formation also remains at historically low levels. Despite a slight increase compared to last year, the number of consultations with founders conducted by the German Chambers of Commerce and Industry (IHKs) in 2024 was still at the second-lowest level since this survey began in 2003.

“This development deeply concerns me, not only as President but also as an entrepreneur. Founders are an innovation driver of our economy. If we lose their dynamism, we lose future opportunities,” remarks DIHK President Peter Adrian. “It is the young entrepreneurs, in particular, who recognize opportunities in difficult times and find the courage to take new risks. Their entrepreneurial spirit deserves not only respect but also better framework conditions,” Adrian continues.

Germany faces largely self-inflicted structural problems from the perspective of founders: an abundance of bureaucracy and documentation obligations, high taxes, sharply increased energy and labor costs, and inadequate digital infrastructure hinder entrepreneurship. “We must modernize Germany as a business location with a variety of measures – quickly, resolutely, and comprehensively,” said the DIHK President. “The modernization agenda proposed by the federal government could be a crucial step forward, but only if implemented consistently. The IHK organization is ready to actively support this path.”

According to the DIHK Report, the “entrepreneurial calling” remains the decisive motivation for business formation. In roughly two-thirds of the IHK consultation sessions, interested individuals cite the desire to become entrepreneurs as the main motivation for starting a business. However, other factors are gaining importance too. The lack of employment alternatives as a reason for business formation is at its highest level in ten years at 34 percent. For female founders, the desire for greater flexibility, for example, better reconciling family and career, traditionally plays an above-average role.

A bright spot is the growing interest in entrepreneurship among women. Almost as many women as men now seek consultations on business formation. Twenty years ago, the proportion was only a little more than one-third.

Founders have clear ideas about how to make business formation more appealing again: three-quarters of respondents believe quicker and simpler regulations are necessary. More than half demand a simpler tax system. High on the founders' list are also better access to public funding, greater societal understanding of entrepreneurship, and lower energy prices.

DIHK President Adrian said: “To improve the business location, policymakers should listen to businesses and seriously consider the demands of the founders: reductions in bureaucracy and costs, straightforward and swift processes, and more appreciation for entrepreneurial efforts – in politics, authorities, schools, and all other business formation-relevant institutions. These are crucial levers to bring Germany back on track. In challenging times like today, we need the courage and pioneering spirit of founders more than ever.”

Based on the experiences of IHKs, speed is central to founders: business formation should therefore rightly be possible within 24 hours, according to the modernization agenda. Policymakers should keep in mind that forming a business involves more than just registering a company. For example, the tax number should be issued more quickly across Germany. Similarly, rapid and comprehensible sector-specific permits such as parking permits for businesses or outdoor seating licenses for the hospitality industry are highly important and should ideally be obtainable online. It would also be beneficial to include IHKs in the implementation process. “The IHK organization will support the federal government’s modernization agenda to the best of its ability because we need to get back to a growth trajectory as quickly as possible,” said Adrian.

The report can be found here: https://www.dihk.de/resource/blob/138364/7e77ff1b05b01d5e1617d70c7925460e/dihk-report-unternehmensgruendung-2025-data.pdf (only available in German)