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Leverkusen tops German startup boom while Halle and Magdeburg trail behind

Why does Leverkusen thrive while others struggle? Tax policies and local support shape Germany's uneven startup landscape. Every city grew—but not equally.

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2 min read
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Leverkusen tops German startup boom while Halle and Magdeburg trail behind

Mainz Lags Behind in Startup Activity During Recession Years

Fewer businesses were founded in Mainz during the recent recession years compared to other German cities. With just 13.92 new startups per 1,000 residents, the city ranks 30th nationwide, according to an analysis by tax app Accountable, based on data from Germany's Federal Statistical Office.

This places Mainz below the national average of 15.05 new businesses per 1,000 inhabitants. The study examined the 50 largest German cities in 2023 and 2024.

Topping the rankings are North Rhine-Westphalia's Leverkusen (28.23 startups per 1,000 residents), Cologne (22.03), and Düsseldorf (20.98). The fewest new businesses were registered in Halle (Saale) (10.16) and Magdeburg (10.29).

However, the analysis also reveals a positive trend: in all 50 cities surveyed, more businesses were founded than closed. Neighboring Wiesbaden recorded the lowest startup surplus—the difference between new and closed businesses—at just 4.0%, well below the national average of 24.31%.

Expert: Local Conditions Are Key

"Whether it's a craft business, freelancer, or small online venture, we need people willing to take the leap into self-employment to drive economic dynamism," says Tino Keller, founder of Accountable, commenting on the findings. The fact that more businesses were launched than shut down in every city is, at first glance, an encouraging sign.

Yet not all startups reflect a spirit of innovation, Keller notes. "In some cases, they're more a response to a tight labor market, where self-employment—often as a side hustle—appears to be the better, or even the only, alternative."

The stark differences between cities highlight how much local conditions matter. Keller points to Leverkusen, whose top ranking he attributes in part to its relatively low business tax rates. "The simpler and more predictable the conditions for founders, the more new businesses emerge—especially in tough economic times," the analysis concludes.

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