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Bavaria leads the ranking for the best federal states for small businesses
Discover the best locations for small businesses in Germany, with Bavaria at the top! Find out why the Free State is ideal for entrepreneurs. 📈💼🇩🇪 #Bavaria #SmallCompanies #EconomicStudy
Bavaria leads the ranking for the best federal states for small businesses
Bavaria has emerged as the best state in Germany for small businesses, according to an analysis of recent data from the Federal Statistical Office. According to Pens.com's research, Bavaria shows its strength in this category compared to other federal states. Small and medium-sized companies play a significant role in the German economy, with around 56 percent of German employees working in this sector. Overall, they generate around 28.7 percent of German sales.
The analysis to determine the best locations for small companies was based on current data from the Federal Statistical Office, which took into account the proportion of companies with fewer than 50 employees, the number of companies founded and closed, and the gross domestic product of the individual federal states. Bavaria took first place with 97.27% micro or small businesses. In 2021, 40,435 new companies were founded in Bavaria, while 49,701 company closures were recorded. Nevertheless, Bavaria contributed a total of 666,388 million euros to the German gross domestic product, resulting in an overall rating of 8.46 / 10 points.
Berlin followed in second place with a value of 8.38 / 10 and the highest proportion of companies with fewer than 50 employees (97.42 percent). In 2021, 18,091 new companies were founded in Berlin, which almost corresponded to the number of closures (19,479). The city-state contributed a total of 165,457 million euros to Germany's gross domestic product. Schleswig-Holstein was in third place with 7.38 out of 10 possible points. In the same year, the state recorded 8,801 business formations and only 1,521 closures.
Bremen took last place in the ranking with a score of just 0.63/10. The state only had 28,113 registered businesses, including 2,300 new businesses and 2,762 business closures. In addition, Bremen had the lowest gross domestic product of 35,151 million euros. It is important to note that Bremen is the smallest federal state with the lowest population.