Nearly half of young people in Germany see themselves as future entrepreneurs

According to a representative survey commissioned by the Bertelsmann Stiftung, 40% of young people in Germany aged 14 to 25 can imagine starting their own business. While 11% have already made concrete plans to do so, 29% remain undecided. Another third of respondents are not currently considering entrepreneurship but do not rule it out entirely. Meanwhile, about a quarter of those surveyed stated that starting a business is not an option for them.

The survey data reveals notable differences in entrepreneurial ambition based on gender, place of residence and age.  Male respondents are more likely than their female counterparts to plan a business venture (14% compared to 9%). Young people living in urban areas show greater interest in starting a business than those from towns with populations of up to 5,000. Older respondents are more likely to rule out entrepreneurship than younger participants. 

“The potential for entrepreneurship among younger generations in Germany remains underdeveloped.”

“Nearly half of young people show an interest in starting a business, which is an encouraging sign, says Tobias Bürger, youth and economy expert at the Bertelsmann Stiftung. “But far fewer actually take the leap to become entrepreneurs.” According to the Global Entrepreneurship Monitor 2023, only about one in six individuals aged 18 to 24 in Germany starts a business. “The potential for entrepreneurship among younger generations in Germany remains underdeveloped. We need to better understand and eliminate the barriers that hold young people back,” Bürger adds.

Among respondents who cannot imagine starting a business, approximately one in four cited a lack of confidence in their abilities, which often leads to uncertainty. One in five doubted whether they possessed the necessary knowledge to run a business. Additionally, one in six expressed concern about their ability to handle the stress associated with entrepreneurship. However, factors such as insufficient capital or the lack of business partners appear to play a lesser role for young people interested in entrepreneurship. 

Broader skillsets, a dynamic culture and stronger support

Based on these findings, the experts at the Bertelsmann Stiftung recommend the following measures: 

• First, entrepreneurial thinking and practical skills should be fostered from an early age, starting in schools. Tailored educational and training programs, such as workshops and student-run businesses outside traditional classrooms, can help young people develop the knowledge and confidence to start a business. Programs designed to build resilience could also equip them with strategies to handle stress more effectively.
• Second, encouraging a culture that supports entrepreneurship is essential. Networking opportunities are especially important for women, individuals with migrant backgrounds and young people in rural areas.  Public narratives and media coverage should highlight the diversity of entrepreneurs to challenge the stereotype of the middle-aged, white, male founder. Highlighting businesses that are socially and environmentally responsible can also help create a more positive and inspiring image of entrepreneurship.
• Third, improving structural and policy frameworks can make it easier for young entrepreneurs to get started. Simplifying bureaucratic procedures and streamlining funding application processes are crucial steps. It’s also important to deliver startup-related information in ways that resonate with younger audiences, particularly through social media. Easier access to startup capital is another key enabler. Expanding grants, offering affordable loans and establishing venture funds tailored to young founders could make entrepreneurship a more realistic and accessible goal.