People who have recently started a business or are planning to do so exhibit more optimism regarding their personal future compared to the general German population. According to a survey conducted in March 2025 by the start-up platform Gründerplattform, 67% of respondents believe that 2025 will be a better year for them and their families than 2024. In contrast, this sentiment is shared by only 56% of the overall population, as noted in the Ipsos Predictions Report 2025.
Even as young entrepreneurs maintain optimism about their personal situations, their perception of Germany as a start-up location remains bleak. On average, they rated Germany a 4 on a scale from 1 to 6 for its start-up friendliness, marking the lowest score in a decade. Respondents expressed a strong desire for administrative simplification, with 45% advocating for cutting red tape, including simplified tax laws and faster application processing. Additionally, a significant portion favored financial relief through measures such as reduced tax rates for new businesses and lower health insurance premiums.
Dr. Dirk Schumacher, Chief Economist of KfW, stated, “The quest for independence is a strong entrepreneurial motive.” He noted that self-employed individuals often experience higher satisfaction levels and thus a more positive view of the future.
The survey conducted by Gründerplattform, an initiative of KfW and the Federal Ministry of Economics, also highlighted that despite the personal optimism among entrepreneurs, around 75% viewed 2024 as a challenging year for Germany overall, matching the sentiment of the general population.
For further insights regarding the state of the German economy and suggestions for future actions, KfW Research offers a detailed exploration in the position paper “Managing the transition, strengthening growth,” available for public download.