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ISSN 1995-459X print
E-ISSN 2312-9972 online
ISSN 2500-2597 online English

Leonid Gokhberg


Michael Fritsch 1, Maria Greve1,2, Michael Wyrwich 1,2
  • 1 Friedrich Schiller University Jena, Carl-Zeiss-Strasse 3, 07743 Jena, Germany
  • 2 Groningen University, Nettelbosje 2, 9747 AE Groningen, Netherlands

The COVID-19 Pandemic and Entrepreneurship in Germany

2021. Vol. 15. No. 4. P. 42–51 [issue contents]
The COVID-19 pandemic severely affected not only incumbent firms, but also the emergence of start-ups. This paper investigates and analyzes the pandemic’s effect on new business formation, as well as business exits and insolvencies, in Germany. We find that the overall level of business registrations slightly decreased during the first year of the pandemic, but that the effect is specific to certain industries. Innovative manufacturing industries and technology-oriented services experienced an increase in the numbers of start-ups. High subsidies and a temporary suspension of important criteria obliging firms to declare insolvency weakened market selection resulting in fewer exits in 2020. The relaxation of insolvency regulations may lead to considerable numbers of ‘zombie’ firms. Generally, the pandemic re-enforced ongoing structural change, but also exerted specific effects that may be temporary in nature.
Citation: Fritsch M., Greve M., Wyrwich M. (2021) The COVID-19 Pandemic and Entrepreneurship in Germany. Foresight and STI Governance, 15(4), 42–51. DOI: 10.17323/2500-2597.2021.4.42.51
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