Entrepreneurial activity in Germany experienced a boost last year, according to a preliminary evaluation from the KfW development bank’s founding monitor. The overall intensity of starting a business increased from 115 to 136 new businesses per 10,000 people aged 18 to 64. Converted for the working-age population, this equates to approximately 690,000 founders, up from 585,000 in the previous year.
This positive trend was mainly driven by part-time ventures. The intensity of starting side-employment ventures rose by 20 points to 95 per 10,000 people, compared to 75 the previous year. This translates to roughly 483,000 side ventures in 2025, an increase from 382,000 the year before. In contrast, the intensity of full-time ventures showed little change, remaining at 41 per 10,000 people-the third consecutive year of stability. This represents about 206,000 full-time ventures in 2025. Due to this divergent development, the proportion of side-employment ventures in the overall founding activity rose to an unprecedented 70% last year.
The primary reason surveyed founders cited for starting a part-time self-employment venture was generating supplementary income. According to Dirk Schumacher, Chief Economist at KfW, the rising cost of living is a likely cause for the sharp increase in part-time founding activity. He added that accessing the labor market has become more difficult and that even small side jobs are no longer easy to find, making self-employment an alternative for extra income.
The majority of founders in Germany do so out of conviction; two-thirds prefer self-employment over being a salaried employee. While the proportion of side ventures doing so is lower than in full-time ventures, it still represents a clear majority and actually accounts for a higher percentage in 2025 compared to the previous year.
Looking at the nature of the ventures established, 24 percent of new businesses last year were founded by employees (meaning they were related to existing employment). Single-person sole proprietorships dominated with 86 percent, compared to team ventures. Most new businesses were established entirely new, meaning they were legally and structurally set up for the first time, with only 10 percent of cases representing businesses acquired from existing operations.
