Young companies continue to suffer from the Corona crisis

Many self-employed people have found themselves in a difficult financial situation during the Corona crisis – while those who started their business during the crisis are optimistic about the current year, those who were already in business before are less positive.

This article is part of the special feature GründerNavi – for founders and young companies

The coronavirus crisis caused many self-employed people to lose a large portion of their revenue. The revenue level of half of the newly self-employed who started their businesses before 2020 is still below pre-coronavirus levels.

Nevertheless, the majority of those affected expect a higher sales level by the end of the current year - with this positive outlook coming primarily from those who founded their businesses during the crisis.

Increased risk perception

Those already active in business before the pandemic are less optimistic: despite increased sales, around a quarter of them have remained below their pre-pandemic levels. These young self-employed individuals are particularly concerned about ongoing COVID-19 restrictions lasting until the end of the year, which will negatively impact their business activities.

This negative assessment is accompanied by a heightened perception of risk . In addition to the fear of increased business closure, material shortages and rising prices further exacerbate the situation.

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Skepticism about lifting Corona restrictions

The coronavirus crisis is not yet over for many young self-employed people: Sales are often even lower than before the pandemic, but the outlook is optimistic. Photo: © Gründerplattform Blitzbefragung 2022

While three-quarters of young self-employed people struggled with declining revenues in the first year after the pandemic outbreak , many had no income at all for a period of time . This was due to necessary measures to combat the pandemic, contact restrictions, or mandated business closures.

Although most coronavirus restrictions have now been lifted, uncertainty persists among young self-employed individuals . Opinions are divided: one half considers it unlikely that there will still be restrictions to combat the coronavirus pandemic at the end of the year, while the other half considers it likely.

Adaptation of business processes

"For many young self-employed individuals, the coronavirus crisis continues to pose an economic challenge . In addition to the pandemic-related disruptions to international trade, the escalating war in Ukraine is increasing economic and political uncertainty. The risk that further shortages of materials , higher energy prices , and an emerging reluctance to consume will thwart their optimism regarding sales is very high," comments Dr. Fritzi Köhler-Geib , Chief Economist at the KfW Development Bank . This makes it all the more important for young self-employed individuals to be as flexible as possible and to adapt their business models as needed – just as many founders have already done in the last two years of crisis.

Further information on the status of young self-employed individuals and business start-up activities in Germany can be found on the KfW website.

Founder platformBackground Together with the key players in start-up support made Federal Ministry of Economics and Energy, the KfW and Business Pilot credentials for Founder platform as one digital working environment for founders The aim of the offer is to Founding in Germany Since April 2018, the founders’ platform website has been offering for free first ideas for a Business Model further developed, a Business plan written and potential funding and financing partners The platform pools Germany's funding expertise and also displays funding opportunities precisely where they can provide concrete assistance in the startup process.
Source: KfW ResearchDHB now also digital!Simply click here and register for the digital DHB!