Wiesbaden / Munich Energy costs are rising and inflation is holding back consumers’ desire to buy. But many companies aren’t impressed by this. At the same time, however, the uncertain environment is holding back the company’s founders.
In economically uncertain times, fewer company founders in Germany have dared to enter the market this year. This was announced today by the Federal Statistical Office.
Meanwhile, a survey by the Munich Ifo Institute showed that current setbacks are significantly less of a concern for established companies than the Crown crisis. “In view of the sharp economic slowdown, companies are proving very solid”, summarizes Ifo expert Klaus Wohlrabe today.
According to Ifo information, 7.5% of companies currently see their existence threatened. This is much less than during the hot phase of the Crown crisis: in June 2020, at 21.8%, almost three times as many companies felt threatened.
The number of start-ups is decreasing
However, the uncertain economic environment is holding back company founders. From January to August 2022 inclusive, the Federal Statistical Office counted as many as 80,200 start-ups of companies whose legal form and number of employees indicate greater economic importance.
According to the Wiesbaden authority, this was 6.6% less than in the same period of the previous year, heavily influenced by the pandemic. Compared to the first eight months of the pre-Crown 2019 year, the number was 5.0% lower.
According to the Federal Office, some 58,000 companies of major economic importance have given up their business in the first eight months of the current year, 2.0 percent more than in the previous year.
Retail trade suffers from the consequences of inflation
According to the Ifo, concerns are currently particularly high in the retail trade. There, 11.6% report a dangerous situation for existence. “The current inflationary dynamics are causing retailers great concern,” explains expert Ifo Wohlrabe.
As energy and food have become dramatically more expensive, many consumers restrict their purchases to essentials.
According to the Federal Statistical Office, the total number of business registrations from January to August 2022 inclusive decreased by 5.3 percent to around 455,600 compared to the same period last year. In addition to start-ups, there have been acquisitions, for example through purchases, as well as conversions and arrivals from other registration districts.
© dpa-infocom, dpa: 221031-99-328743 / 2