KfW Research: Germany's Startup Landscape Continues to Get Younger

Germany's entrepreneurial landscape continues to rejuvenate, as indicated by KfW Research. The average age of founders in Germany fell to 34.2 years in 2025, down from 34.4 years in the previous year. Significantly, the share of founders under 30 years old rose to 40 percent, matching the record set in 2024. For comparison, only 30 percent of founders were under 30 in 2002.

Overall, startup activity in Germany increased in 2025, with approximately 690,000 founders, up from 585,000 the year before. This growth was primarily driven by part-time business formations, which rose from 382,000 to 483,000. The number of full-time business startups remained largely stable at 206,000.

The research highlights that entrepreneurial spirit is strongest among the young. Although 36 percent of respondents under 30 stated they would prefer self-employment over being an employee, this preference has declined from earlier years. Generally, the inclination towards entrepreneurship in Germany has decreased over recent years, despite the presence of successful young entrepreneurs and influencers in the media.

Individuals with an immigration background accounted for 34 percent of founders in 2025, a disproportionately high rate relative to their share of the population. Furthermore, digital offerings reached a record high, with 44 percent of new businesses built around digital services. The average age of business owners in Germany is over 54, and many are seeking successors. KfW emphasizes the need to increase the appeal of taking over existing businesses.