IAmid the weak economy in Germany, more companies with greater economic importance will have completely stopped their business in 2023. 96,600 such companies gave up, 7.9 percent more than in the previous year, as the Federal Statistical Office announced on Friday in Wiesbaden.
At the same time, around 118,500 companies were founded in 2023, the legal form and number of employees of which indicate greater economic importance. That was 2.9 percent more than in the previous year. The bottom line is that, as in all years since the start of the time series in 2003, the number of businesses founded was higher than the number of business closures, the statisticians explained.
Overall, the total number of complete commercial abandonments in 2023 was around 486,900, 8.3 percent higher than in the previous year, as the statisticians calculated. The number of business de-registrations was around 602,700, 7.0 percent above the previous year's level. These included a particularly large number of small businesses (plus 22.6 percent).
Rise in interest rates has changed financing conditions
As interest rates have risen, loans have become more expensive for companies. Poor financing conditions are causing problems for start-ups, for example. The business de-registrations do not only involve business closures, but also business transfers, conversions or moves to other registration districts.
At the same time, the number of new businesses founded in 2023 increased significantly by almost 7 percent to around 593,200 compared to the previous year. The total number of business registrations increased by 6.2 percent to around 715,000, also driven by a strong increase in small businesses.
In addition to new start-ups, business registrations also include business takeovers, conversions and moves from other registration districts.
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