Study: Migrants are founding fewer companies in Germany
Ukraine war, energy crisis, inflation and economic downturn: According to a study, the start-up activity of migrants in Germany has declined in the face of difficult conditions. Last year, they accounted for 98 start-ups per 10,000 people in the labor force, according to the state development bank KfW.
The rate thus slipped below that of the total population of 108 start-ups. However, at 22%, more than one in five of all start-ups in Germany are attributable to migrants - i.e. people without German citizenship or naturalized citizens.
In 2020, when the coronavirus pandemic broke out and caused a recession, start-up activity among migrants fell for the first time since data collection began. It then grew disproportionately again in 2021. Even if their start-up activity fell more sharply in the two crisis years of 2020 and 2022, this does not apply to the desire for self-employment among migrants: At around a third in each case, it is significantly higher than in the overall population (24 and 23 percent).
"The desire for self-employment remains high," concludes KfW Chief Economist Fritzi Köhler-Geib. "It was probably mainly external conditions that had a negative impact on the start-up activity of migrants during the crisis years - for example, due to the traditionally stronger international focus of migrant start-ups."
She assumes that start-up activity will pick up as soon as the overall economic environment becomes more favorable again. "Migrants continue to make a relevant contribution to start-up activity in Germany," emphasized KfW Chief Economist Köhler-Geib.
The general conditions, such as the Ukraine war, energy crisis, and economic downturn, have made it more difficult for migrants to start companies in Germany, leading to a decline in their start-up activity. Despite the challenging circumstances, over one-fifth of all start-ups in the country are initiated by migrants, demonstrating their enduring interest in self-employment. The company, KfW, attributes this decline in start-up activity to external conditions rather than a waning desire for entrepreneurship among migrants.
Source: www.ntv.de
