OREANDA-NEWS. Entrepreneurs in Germany are tackling more promising projects than they did a few years ago. In 2013, for the first time more than half of all entrepreneurs put into practice a specific business idea with their business project (2013: 53%, 2012: 47%, 2011: 35%). Moreover, in 2013 11% of entrepreneurs - almost three times as many as in 2009 - brought something new to supraregional markets. This means that start-ups are more resourceful than ever - this was a key finding of the KfW Start-up Monitor 2014, a representative annual population survey of start-up activity in Germany. "Germany's entrepreneurs are increasingly translating ideas into new offerings, they are looking for an opportunity for sustained success - that is really good news", said Dr Jorg Zeuner, Chief Economist of the KfW Group, at the presentation of the report in Frankfurt today. "Entrepreneurs - particularly those offering technological innovation - are an important driver of our economy's steady and necessary renewal".

The gross employment effect of start-up activity has risen over the past year - this, too, is a sign of increased sustainability. Start-ups created 419,000 full-time equivalent jobs (+9%) and recruited more employees. 27% of full-time start-ups began life with employees, compared to only one in five full-time start-ups in 2005.

The number of start-ups in the past year came to 868,000 (+12% against 2012). As we reported in February (see press release dated 18 February 2014; www.kfw.de/gruendungsmonitor2014 <http://www.kfw.de/gruendungsmonitor2014>), the increase was attributable solely to a substantial rise in part-time entrepreneurs (2013: 562,000; 2012: 460,000). "Rather than being driven by 'emergency start-ups', this increase in part-time start-ups is due to the fact that entrepreneurs see a market for their business idea", said Dr Zeuner. "Despite the generally moderate economy in 2013, it would seem that they took advantage of the significant pick-up in domestic demand".

Most entrepreneurs (2013: 83%) did not experience any financing difficulties during the implementation of their start-up project (37% because they had no funding requirement and 46% because they were able to source own or third-party finance without any problems). The financing employed by entrepreneurs came to just under EUR 10 billion in 2013 (2012: EUR 8.4 billion, 2011: EUR 7.7 billion). The percentage of third-party finance has risen from 31% in 2009 to 52%. "The number of entrepreneurs who invest more funds at the outset and therefore also require higher loans from their banks, for example, has increased. Of course, this makes it necessary to focus in particular on the financing conversation", said Dr Zeuner. "However, obtaining finance is not an impossible task. Banks certainly provide finance to convincing start-ups - particularly as the good promotional policies in place mean that they are relieved of part of what is without doubt a high risk".