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In 2023, Cologne outpaced all other major cities in Germany in terms of new business registrations. This was revealed in a recent Localyzer study analyzing 1,680,748 business registrations across the 25 largest German cities. The data was gathered and analyzed from local statistical offices and city press departments. According to the Federal Statistical Office, there were nearly 3.44 million businesses in Germany in 2022, with around 39,000 additional businesses in 2023 (approximately 173,000 new registrations and 134,000 deregistrations).
Cologne Leads the Pack
Last year, Cologne recorded 13,833 business registrations and 8,301 deregistrations, resulting in a net increase of 5,532 new businesses for the city. This translates to more than five new businesses per 1,000 residents. Of these, 1,300 new businesses were added in the retail sector alone. Compared to other cities analyzed, Cologne's business landscape grew the most significantly.Bonn ranks second with 3.87 new businesses per 1,000 residents, followed by Hamburg (3.51), Bremen (3.06), and Berlin (2.37).
Entrepreneurial Spirit? Not in Wuppertal
In Wuppertal, 2,966 businesses were registered in 2023, but 2,918 were also deregistered. This leaves the city with only 48 new businesses and a growth rate of 0.13 businesses per 1,000 residents, placing it last in the ranking. Sector-specific data shows that the construction industry experienced the highest decline (51 deregistrations), followed by the hospitality sector with 36 business closures. Similarly, business growth stagnated in cities like Bielefeld (0.38 additional registrations per 1,000 residents), Dresden (0.67), Wiesbaden (0.7), and Mönchengladbach (0.86).
Tech Thrives in Berlin, Finance in Hamburg, but Healthcare Faces Challenges
The business registrations also provide insights into various sectors. The tech industry thrived in Berlin in 2023, with 1,303 new businesses in the "Information and Communication" sector — more than double that of Hamburg, the second-ranking city. However, in the "Financial and Insurance Services" sector, Hamburg leads with 757 new businesses, well ahead of Berlin with only 309.While most sectors recorded more registrations than deregistrations, some industries faced local declines. For instance, the "Manufacturing" sector showed deficits in ten cities, including Berlin, Essen, and Mönchengladbach. Similarly, the "Healthcare and Social Services" and "Transportation and Storage" sectors experienced negative trends in nine cities. In Munich, for example, the "Transportation and Storage" sector saw a net loss of 330 businesses in 2023.On the other hand, some sectors consistently grew across all cities, such as retail, "Information and Communication," energy supply, as well as "Education and Training" and "Arts, Entertainment, and Recreation."
About the Study
Localyzer's research involved data requests from business registration offices and press departments of the 25 most populous German cities, covering business registrations by economic sector from 2018 to 2023. Only Hamburg's data extends only to 2022. Where possible, the data was standardized and made comparable across sectors. However, in cities like Berlin, Hamburg, Dresden, Hanover, and Leipzig, some sectors were grouped as "Other Economic Activities," limiting direct comparability in certain cases.