BERLIN, Nov. 4 (Xinhua) -- A growing number of startup founders in Germany are expressing dissatisfaction with the country's business environment, the German Chamber of Commerce and Industry (DIHK) said Tuesday, warning that excessive bureaucracy and rising costs are weighing on new business formation.
According to the chamber's annual report on entrepreneurship, nearly 60 percent of company founders surveyed said they were unhappy with Germany as a startup location - an increase of seven percentage points from the previous year and higher than during the pandemic. The share of those "very dissatisfied" has nearly doubled over the past two years.
Drawing on around 200,000 annual consultations with aspiring entrepreneurs, the report found that the willingness to start new businesses remains weak. Startup consultations in 2024 were at their second-lowest level since the early 2000s, showing only a marginal rise from last year.
"This development worries me deeply, not only as DIHK president but also as an entrepreneur," said Peter Adrian, president of the DIHK, warning that Germany risks losing its innovative edge if startup activity continues to stagnate.
The DIHK urged the government to prioritize cutting red tape and boosting competitiveness. Respondents also called for faster and simpler administrative procedures, a more transparent tax system, and better access to financing. High energy and labor costs, slow digital infrastructure, and complex regulations were cited as the main obstacles to entrepreneurship.
