05/2025 – Young Companies

Young companies represent change, growth and innovation – and this makes them a central pillar in the future of a country’s economy. However, entrepreneurial dynamics in Germany have slowed for years. At the same time, start-ups and young businesses are facing growing challenges: from a shortage of skilled professionals to high cost pressure and regulatory hurdles. What is needed to unleash untapped entrepreneurial potential? 

In the current ZEW Monthly edition on the topic “Young Companies” we consider this question and look closely at the multi-faceted start-up activity. The number of new businesses has been steadily declining for years, especially in research-intensive industries and key sectors like the ICT sector. ZEW researchers analyse the consequences of this development and show what potential remains untapped, for example in public procurement.