Press Release from 2025-04-17 / Group, KfW Research
KfW Research: Young and emerging entrepreneurs are more optimistic about their personal situation
- Survey finding: Business founders more positive about 2025 than overall population
- Still, Germany as a start-up location was given the lowest score in ten years
- Cutting red tape tops the wish list of desired improvements
People who only recently founded a business or are planning to start one are much more optimistic about their own future than the German population at large. In a snap poll of users of the Start-up platform (Gründerplattform), 67 per cent of respondents agreed with the statement that 2025 will be better for them and their family than 2024. Among the overall population, that figure was only 56 per cent. In addition, only 38 per cent of young and emerging entrepreneurs agreed with the statement that 2024 was a bad year for them and their family. That figure was a significantly higher 47 per cent across the overall population. The comparative figures for the overall population were derived from the relevant questions of the Ipsos Predictions Report 2025.
In the snap poll, young and emerging entrepreneurs held roughly the same dismal view of the overall situation as the rest of the population. Around the same proportion as the overall population – 75 per cent – agreed with the statement that 2024 was a bad year for Germany.
“The quest for independence is a strong entrepreneurial motive”,
said Dr Dirk Schumacher, Chief Economist of KfW.
“Being in charge of one’s own destiny contributes to self-fulfilment, which is why self-employed people typically show higher levels of satisfaction. It was probably one reason why they had a more positive personal view of the year 2024 than the population at large. Their more optimistic outlook on 2025 is hardly surprising since a positive view of the future is a common trait of business founders.”
The start-up platform Gründerplattform is based on an initiative of KfW and the Federal Ministry of Economics. It accompanies and supports the start-up process with information and tools. The snap poll was conducted in March 2025.
Although business founders tended to have a positive view of their personal situation, they mostly gave Germany as a start-up location a low score. On average, they assigned a score of 4 on a scale of 1 to 6, where 1 is excellent – the lowest of the past ten years. Asked what improvements they would like to see, 45 per cent mentioned cutting red tape, including simplifying tax laws and speeding up the processing of applications. One fourth of respondents would like to see measures that provide financial relief, such as a lower tax rate for business founders and a reduction in minimum health insurance premiums.
The brief analysis can be found at Focus on Economics | KfW
Where does the German economy stand today? What does the country need to become future-proof? KfW Research explores these questions in the position paper “Managing the transition, strengthening growth”, with analyses of the current situation and recommendations for action in five policy areas. The paper is available for download at Papers and Proceedings on Economics | KfW
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