In Austria, around 357,000 companies consisted of just one person in 2023 – that’s about 60 percent of all companies in this country. The number of one-person companies (EPU) is therefore continuing to rise. The Austrian Federal Economic Chamber (WKÖ) announced this at a press conference on Monday. 16 percent of sole proprietors run their company while they are already receiving a pension.
This proportion is not the only thing that has increased in recent years. Sole proprietors stated that they started their business at an average age of almost 37. For those who took the step into self-employment in 2010 or later, the average age is over 41. The fact that people are starting their business later and later has also been observed for some time, says Eva Heckl from KMU Forschung Austria, which prepared the report on behalf of the WKÖ.
Regardless of age, the main reasons for starting a business are much more motivated than frustrated. Independence (80 percent), self-fulfillment (76 percent) and flexible scheduling (70 percent) are the main factors here, but dissatisfaction with their former job (29 percent) also motivated some to start a business, the WKÖ observed. “They are entrepreneurs out of conviction,” says Mariana Kühnel, Deputy Secretary General of the WKÖ, with certainty.
Struggling with inflation
In their role as sole proprietors, they also had to contend with inflation last year. 45 percent of respondents said they had seen a decline in sales compared to 2022, adjusted for inflation.
The sole proprietorships were also surveyed on the topic of artificial intelligence (AI). Seven out of ten one-person companies do not plan to use AI tools in the near future. Those sole proprietorships that already use AI stated that the biggest challenge was the lack of or insufficient expertise in the field.
Based on the survey, the Austrian Economic Chamber is calling for a further increase in the GWG limit from 1,000 euros to 2,000 euros. The Chamber is also repeating its call for less bureaucracy. “This is what is massively crippling the competitiveness of Austria, but also Europe,” says Kühnel. Kühnel describes the increase in the turnover limit for the small business regulation from 35,000 euros to 55,000 euros as a “partial victory” and the goal is 85,000 euros.
