Germans find jobs, set up fewer new firms

Published: 12 Apr 12 10:21 CET
Online: http://www.thelocal.de/money/20120412-41899.html

ShareTweetGermans are increasingly taking on jobs rather than deciding to become their own bosses, with the number of new start-up businesses this year expected to be the lowest since reunification.
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This is mostly due to the strong job market, he told the Handelsblatt newspaper on Thursday.

With more jobs available, said Heinrich, "fewer people want to be their own boss."

The number of new businesses has been falling steadily, from a high of 500,000 in 2005 down to 400,000 in 2011, according to figures from the Bonn-based IfM institute, which studies small and medium-sized businesses.

And the DIHK report says this collapse will continue, predicting considerably fewer than 400,000 new start-ups in 2012, bringing it down to the lowest level seen since 1990.

Most business advisers working with the DIHK - 70 percent