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Germany Sees Record-Low Interest in Founding New Businesses

(DIHK German Chamber of Commerce )

(Bloomberg) -- Germany’s appeal as a location for founding a business and interest in setting up a new company are at record lows, according to a new survey, adding to the negative sentiment around Europe’s biggest economy.

While the economic situation and uncertain business environment play a part, entrepreneurs also highlight issues such as bureaucracy and high costs, the poll published Wednesday by the DIHK German Chamber of Commerce and Industry showed.

More than 70% of the nearly 1,000 budding entrepreneurs surveyed want faster and simpler regulations, while 65% single out tax laws as a factor holding them back.

“I am deeply concerned about our location,” DIHK President Peter Adrian said in an emailed statement.

“We are witnessing a gradual decline due to intensified production cutbacks and a tendency to move abroad,” Adrian added. “If now fewer and fewer people want to set up companies in this country, we will lose important potential for growth and innovation.”

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