This is how badly Germany performs when it comes to reasons

The Global Entrepreneurship Monitor looked at 43 countries. The Federal Republic of Germany only ranks 41st in terms of the start-up rate.

Germany is not the country where starting a business is particularly attractive. In an international comparison of the Global Entrepreneurship Monitor (GEM), Germany ranks 41st out of 43 countries in terms of the start-up rate. In this country, only 4.8 percent of 18- to 64-year-olds founded a company in the past three years. Angola is in first place, with Poland and Italy bringing up the rear behind Germany. For the Monitor, 135,942 people and 1,821 start-up experts were surveyed in 43 countries; 72 of the experts and 3,003 people came from Germany. The survey was conducted by the RKW Competence Centre and Leibniz University Hanover for the Federal Ministry of Economics and Technology.

The founders rate the general conditions as good in Germany, with the country ranking in the middle of the field. However, access to capital is lacking: only about half of the respondents say that they are provided with sufficient capital by investors. The other half rely on state aid. This can reach start-ups in the form of low-interest loans, for example from the KfW, or government guarantees. Recently, the German government also set up a Future Fund, which aims to pay out ten billion euros to start-ups by 2030. Private investors will contribute another 20 billion euros. For the Federal Commissioner for Start-ups, Thomas Jarzombek (CDU), this help is still not enough; he is calling for a second 100-billion-euro Future Fund.

In terms of diversity, however, Germany is in a good position, as the GEM shows: Proportionally, almost as many women as men founded a start-up, and the start-up rate in 2020 was higher among immigrants (5.6 percent) than among native-born people (4.7 percent).


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