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An analysis of commercial register data shows that start-up activity in Germany has plummeted this year after the corona pandemic ended in 2022.
In recent years, Germany has experienced an unprecedented economic roller coaster ride, ranging from the corona pandemic to inflation. But while the pandemic has put many businesses to the test, and even forced some to close, inflation has managed to affect startup activity in the country in a very different way. A detailed analysis of commercial register data over the past five years sheds light on this remarkable trend.
A look at the data
The commercial register data show a significant decrease in the number of company start-ups in Germany since 2022. In particular in the years 2019, 2020 and 2021, the number of start-ups remained relatively stable, with fluctuations being recorded in the various calendar weeks. In 2019, the year started with 2,880 foundations in the 20th calendar week, but reached a low point of 2,354 foundations in the 25th calendar week before it rose again.
The post-pandemic tipping point
However, times changed after the end of the Corona pandemic in 2022. While the economic outlook was initially optimistic, analysis of the data for this year shows a striking void in start-up activity. Only 1,878 and 2,414 start-ups were recorded in calendar weeks 24 and 23, which represents a drastic decline compared to previous years, even if these figures do not include the start-up of associations. Post-pandemic uncertainty, coupled with economic uncertainties and rising inflation, seem to deter potential entrepreneurs.
Inflation as the new stumbling block
While the Corona pandemic has undoubtedly had a significant impact on business activity, it is worth noting that inflation has emerged as a new factor negatively affecting start-up activity in Germany. Inflation can increase the cost of starting a business as commodity, rent and labor prices rise. This could make budding entrepreneurs reluctant to start new businesses as economic uncertainty and rising costs pose a significant risk.
Outlook and challenges
Current data suggests that start-up activities in Germany are facing serious challenges. As the economic landscape continues to be characterized by uncertainty, it will be crucial for governments, business associations and companies alike to devise strategies to encourage entrepreneurship and support budding founders. The effects of inflation on start-up activity illustrate the need for a holistic approach to ensure economic stability and growth in Germany.
Overall, the analysis of the commercial register data makes it clear that start-up activity in Germany is influenced by a variety of factors, from the pandemic to inflation. The coming months and years will show whether and how Germany can overcome these challenges in order to stimulate start-up activities in the country again.
| Year | KW 20 | KW 21 | KW 22 | KW 23 | KW 24 | KW 25 | KW 26 | KW 27 | KW 28 | KW 29 | KW 30 | KW 31 | KW 32 | KW 33 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2019 | 2880 | 2746 | 2148 | 2708 | 2157 | 2354 | 2793 | 2785 | 2801 | 2770 | 2714 | 2770 | 2596 | 2692 |
| 2020 | 2697 | 2069 | 2625 | 2121 | 2237 | 2807 | 2840 | 3048 | 3034 | 2735 | 2954 | 2861 | 2682 | 2809 |
| 2021 | 3458 | 2744 | 2857 | 3467 | 3286 | 3266 | 3334 | 3181 | 3278 | 3068 | 3219 | 3046 | 2939 | 2992 |
| 2022 | 2344 | 2299 | 2708 | 2414 | 1878 | 2345 | 2372 | 1993 | 2138 | 2111 | 2431 | - | - | - |
| 2023 | 1692 | 1821 | 1327 | 1861 | 1604 | 1791 | 2235 | 1749 | 1703 | 1888 | 1755 | 1128 | 2294 | 819 |
Data sources: Commercial Register 2019-2021, StartupDetector Newsletter 2022-2023 (excluding associations).
Note: Data missing for week 31-33/2022
In recent years, artificial intelligence (AI) has undergone a remarkable development and its influence on various industries cannot be overlooked. Particularly in the software-as-a-service (SaaS) and business-to-business (B2B) industries, it is evident that AI has revolutionary potential. In this article, we will explore the impact of AI on these sectors and why it will shape the future of these industries.
Personalization and customer experience:
Advancing AI is enabling greater personalization of services and products. In B2B business, personalized customer service is critical. AI-based systems can analyze customer behavior, understand preferences, and create personalized offers, leading to a significant improvement in customer experience. Companies can offer customized solutions to their customers, which promotes long-term business relationships and customer loyalty.
Increasing efficiency:
KI systems can automate complex tasks and streamline processes, leading to significant efficiency gains in SaaS and B2B businesses. By automating repetitive tasks, employees can focus on more demanding and strategic activities. This leads to faster decision-making processes and overall more efficient business operations.
Predictive analytics and business intelligence:
By analyzing big data, AI can generate valuable insights and predictions. In the SaaS industry, this enables better insight into user behavior, application performance, and identification of trends. In B2B, AI-powered analytics can help companies make informed decisions that lead to better market strategy and improved competitiveness.
Automated customer support:
Chatbots and virtual assistants are revolutionizing customer support in SaaS and B2B businesses. AI-powered chatbots can handle customer queries in real time, provide around-the-clock support, and answer frequently asked questions. This leads to faster response time and overall improved customer satisfaction.
Risk management and security:
In today's digital world, security and risk management are of paramount importance. AI can detect potential security threats, identify anomalies, and prevent data leaks. In the SaaS industry and B2B business, customer and partner data is invaluable, and AI-based security solutions provide robust protection against cyberattacks and data breaches.
Conclusion:
The combination of AI and the SaaS industry and B2B business is a winning partnership. AI's ability to improve personalization, efficiency, business intelligence, automated customer support, and security makes it an indispensable tool for companies seeking success in these industries. The continued development of AI technologies will undoubtedly lead to more breakthrough innovations and further revolutionize these industries. Companies that recognize and leverage the benefits of AI will gain a competitive advantage and solidify their position in the ever-changing business world.
PHPUnit is an open source framework for running automated tests in the PHP programming language. It is designed specifically for testing PHP applications and provides a set of features and tools to help developers write and execute unit tests, integration tests, and functional tests for their PHP codebase.
PHPUnit allows developers to write test cases that verify that certain parts of their code work as expected. This helps find bugs and ensure that the code is reliable and bug-free. The framework provides assertions that allow checking if certain conditions are met, as well as test runners that allow running tests in an automated and repeatable way.
Here are some key features of PHPUnit:
Assertions:PHPUnit provides a variety of assertions that developers can use to check whether certain conditions are true or false. For example, you can check if a function returns the expected value or if a variable contains a certain value.
Test suites: Test suites allow you to group test cases so that you can run multiple tests simultaneously.
Test Runner: PHPUnit's Test Runner can automatically detect and execute tests and report results.
Data provider: PHPUnit provides the ability to provide test data from different sources to test different scenarios.
Mocking: PHPUnit supports creating mock objects to create isolated tests for classes that depend on other classes.
Integration with CI/CD: PHPUnit can be integrated with continuous integration and deployment processes to ensure that tests are executed on every code change.
PHPUnit is widely used in the PHP development community to ensure the quality and reliability of PHP applications. It plays an important role in testing software to ensure that changes to the code do not have unexpected side effects and that the application works correctly.
In the world of web development, developers often face the challenge of choosing the right technology for their projects. A frequently discussed topic is the comparison between CSS and Vue.js - two important building blocks for website design and functionality. While CSS provides the foundation for design, Vue.js enables the creation of interactive user interfaces. Let's take a closer look at the pros and cons of both technologies.
CSS: Kingdom of Design
Cascading Style Sheets (CSS) are indispensable when it comes to designing the look and feel of a web page. Here are some advantages of CSS:
Advantages:
Universal application:CSS is fundamental to web design. Every web page needs CSS to define colors, fonts, layouts, and other visual aspects.
Easy to use: The basics of CSS are easy to learn and implement. It allows developers to precisely control the look and feel of their website.
Separation of content and design:CSS allows the content of a web page to be separated from its design. This makes maintenance and changes easier.
Disadvantages:
Limited interactivity: CSS is mainly limited to design and provides limited ability to create interactive user interfaces.
Complexity in larger projects: CSS can quickly become cluttered with complex layouts, which can lead to code that is difficult to maintain.
Vue.js: The power of interactivity
Vue.js is an advanced JavaScript framework that enables the development of interactive front-end applications. Here are some advantages and disadvantages of Vue.js:
Advantages:
Component-based structure:Vue.js uses a component-based architecture that promotes reusability and facilitates the development of complex UI elements.
Reactive data binding: Vue.js provides reactive data binding, where changes in data are automatically reflected in the UI. This saves development time and reduces errors.
Easy integration:Vue.js can be integrated incrementally into existing projects, making it easier to migrate to modern technologies.
Disadvantages:
Learning curve: While the basics are relatively easy to learn, mastering more advanced concepts of Vue.js can take time.
Performance overhead: For larger applications, Vue.js can introduce some overhead that can impact load times.
Conclusion:
The comparison between CSS and Vue.js makes it clear that the two technologies have different focuses. CSS is indispensable for web design and layout, while Vue.js enables the creation of interactive user interfaces. The choice depends on the requirements of the project - for visual design CSS is indispensable, while Vue.js is the right choice when it comes to engaging interactivity. In many cases, both technologies are even used together to provide an optimal user experience.
The GEM country report Germany 2021 presents pleasing results regarding start-up activities in 2021 and their connection to the COVID-19 pandemic. The start-up rate, measured by the total early-stage entrepreneurial activity (TEA), has increased significantly compared to the previous year. This could be due to a positive response from business and the adaptability of those looking to start a business during the pandemic.
Start-up rate at the second highest level since 1999
The TEA rate, which represents the proportion of 18-64 year olds in Germany who have founded a company or are in the process of founding one, reached the second highest value in 2021 since the survey began in 1999 – 6.9%. This represents an increase of 2.1 percentage points compared to the previous year (4.8%). This increase suggests that, despite the ongoing uncertainties due to the pandemic, the willingness to start a business has increased in Germany.
Pandemic as driver for new business opportunities
Interestingly, more than a third of the TEA founders surveyed appear to indicate that the COVID-19 pandemic has opened up new business opportunities. This makes it clear that in the midst of the crisis, entrepreneurial opportunities can also arise that lead to new start-ups. In 2020, that proportion was even lower (a quarter of TEA startups were based on pandemic-related opportunities).
More focus on digital sales channels
Although around 76% of TEA founders in Germany have set up their sales channels digitally, the report shows that there is still room for further progress in the field of digitalization. In particular, cooperation between established companies and young, up-and-coming start-ups could lead to a win-win situation. Digital sales platforms and the customers of established companies could offer young companies faster market access.
Gender differences in start-up activity
An interesting aspect highlighted in the report concerns gender disparities in start-up activity. This shows that the gender gap, i.e. the difference between the start-up activities of men and women, was reduced during the COVID-19 pandemic. This applies above all to the prospective founders (nascent entrepreneurs), whose proportion is equalizing. The results indicate that women are more likely to intend to start a business, but are less likely to put them into practice than men.
Measures to promote start-ups by women
The report proposes various measures to further reduce the gender gap and to promote the start-up activities of women. This includes the expansion of childcare options, the promotion of women in business and STEM subjects and the presence of successful female founders as role models. Access to venture capital for female founders could also be improved, especially in the technology-oriented area.
Conclusion: increase in start-up activities despite the pandemic
The GEM country report Germany 2021 shows that the start-up rate in Germany increased in 2021 despite the ongoing COVID-19 pandemic. This could be due to an increased adaptability of the entrepreneurs, the identification of new entrepreneurial opportunities and the positive reaction of the economic policy. Gender differences in start-up activity have also narrowed during the pandemic, indicating increased support for start-ups by women. In order to further support this trend, targeted measures could be taken to strengthen the framework conditions for women in the start-up world.