Germany

Region: Europe and North America
 

Classification of economies by geographic region is based on that of the United Nations Statistics Division.

High Income
 

Based on the income levels set out by the World Economic Forum (WEF) in its Global Competitiveness Report. However, the groupings are slightly different due to the numbers of economies covered. For GEM, the low income group contains both those classified as low income and lower middle by WEF, and the middle income group has those that WEF groups as upper middle. High income is the same for both GEM and WEF.

Population: 82.7 million (2018)
 

Population data is from the World Bank, except Palestinian Territories World Population Review and Taiwan Worldometers

GDP Growth: 1.5% (2018)
 

GDP growth data is from the World Economic Outlook Database, except Palestinian Territories Worldometers

GDP Per Capita: $48,264 (2018)
 

GDP per capita data is from the World Economic Outlook Database, except Palestinian Territories Worldometers

Entrepreneurial Behaviour and Attitudes

Most recent data: 2018
  • Germany 2018
  • Germany 2017
  • Global Average
  • Regional Average
  • Income Level Average

Self-Perceptions

  • 1
     
    Perceived Opportunities Rate:Percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who see good opportunities to start a firm in the area where they live
  • 2
     
    Perceived Capabilities Rate:Percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who believe they have the required skills and knowledge to start a business
  • 3
     
    Fear of Failure Rate*:Percentage of the 18–64 population who agree that they see good opportunities but would not start a business for fear it might fail. NOTE: this is a percentage of those seeing good opportunities, and not the total adult population
  • 4
     
    Entrepreneurial Intentions Rate:Percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who are latent entrepreneurs and who intend to start a business within three years
  • 1. Perceived Opportunities Rate
  • 2. Perceived Capabilities Rate
  • 3. Fear of Failure Rate*
  • 4. Entrepreneurial Intentations Rate:

Activity

  • 1
     
    Total early-stage Entrepreneurial Activity (TEA):Percentage of 18-64 population who are either a nascent entrepreneur or owner-manager of a new business
  • 2
     
    Established Business Ownership Rate:Percentage of 18-64 population who are currently an owner-manager of an established business, i.e., owning and managing a running business that has paid salaries, wages, or any other payments to the owners for more than 42 months
  • 3
     
    Entrepreneurial Employee Activity Rate:Rate of involvement of employees in entrepreneurial activities, such as developing or launching new goods or services, or setting up a new business unit, a new establishment or subsidiary
  • 1. Total early-stage Entrepreneurial Activity (TEA)
  • 2. Established Business Ownership Rate
  • 3. Entrepreneurial Employee Activity Rate

Motivations

  • 1
     
    Motivational Index:Percentage of those involved in TEA that are improvement-driven opportunity motivated, divided by the percentage of TEA that is necessity-motivated
  • 1. Motivational Index

Gender Equity

  • 1
     
    Female/Male TEA Ratio:Percentage of female 18-64 population who are either a nascent entrepreneur or owner-manager of a 'new business', divided by the equivalent percentage for their male counterparts
  • 2
     
    Female/Male Opportunity-Driven TEA Ratio:Percentage of those females involved in TEA who (i) claim to be driven by opportunity as opposed to finding no other option for work; and (ii) who indicate the main driver for being involved in this opportunity is being independent or increasing their income, rather than just maintaining their income, divided by the equivalent percentage for their male counterparts
  • 1. Female/Male TEA Ratio
  • 2. Female/Male Opportunity-Driven TEA Ratio

Impact

  • 1
     
    High Job Creation Expectation Rate:Percentage of those involved in TEA who expect to create 6 or more jobs in 5 years
  • 2
     
    Innovation Rate:Percentage of those involved in TEA who indicate that their product or service is new to at least some customers AND that few/no businesses offer the same product
  • 3
     
    Business Services Sector Rate:Percentage of those involved in TEA in the 'Business Services' sector - Information and Communication, Financial Intermediation and Real Estate, Professional Services or Administrative Services, as defined by the ISIC 4.0 Business Type Codebook
  • 1. High Job Creation Expectation Rate
  • 2. Innovation Rate
  • 3. Business Services Sector Rate

Societal Values

  • 1
     
    High Status to Successful Entrepreneurs Rate:Percentage of 18-64 population who agree with the statement that in their country, successful entrepreneurs receive high status
  • 2
     
    Entrepreneurship as a Good Career Choice Rate:Percentage of 18-64 population who agree with the statement that in their country, most people consider starting a business as a desirable career choice
  • 1. High Status to Successful Entrepreneurs Rate
  • 2. Entrepreneurship as a Good Career Choice Rate

Entrepreneurial Framework Conditions

Most recent data: 2018

Expert Ratings: 1 = highly insufficient, 5 = highly sufficient

  • Germany 2018
  • Germany 2017
  • Regional Average
  • Income Level Average
  • Global Average
  • Germany 2018
  • Germany 2017
  • Regional Average
  • Income Level Average
  • Global Average

Helping Immigrants get Started

 

 

 

Entrepreneurial Ecosystem

 

Germany has a relatively low level of entrepreneurial activity, even when compared with other developed countries. This can be attributed to the lack of entrepreneurial spirit among adults (only half of adults say entrepreneurship is a good career choice), rather than any shortage of support from the government. 

 

In 2015 the total early-stage entrepreneurial (TEA) rate fell to its lowest in five years – even though the percentage of those who expect to start a business in the next three years grew to the highest it’s been since 2002.

Compared to most other European countries, fewer Germans identify good business opportunities or believe they have the capabilities to carry these out. The country also ranks among the top six in Europe (of 24 countries surveyed by GEM in 2015) when it comes to the fear of failure expressed by adults with respect to starting a business. 

Despite this, the level of opportunity-driven entrepreneurship is high – 3.7 times more adults start a business to pursue an opportunity, than out of necessity. One fifth of German entrepreneurs also expect to create six or more jobs over the next five years.

In addition, unlike a number of other European countries hit by the Euro crisis, the number of SMEs in Germany rose from 1.87 million in 2008 to almost 2.2 million in 2014 while value-add from the sector was up 16% in the same period.

The country has good physical infrastructure and support for entrepreneurs from the government, but has a lack of good entrepreneurship education and poor cultural and social values related to entrepreneurship.

 

 

 

 

 

Helping Immigrants 

 

Germany is home to a high number of migrants and refugees. Germany has long welcomed migrant labour and with the recent influx of migrants to Europe over a million refugees had entered the country as of March 2016.

 

Migrant entrepreneurs are a valuable source of employment in Germany. A 2014 study by the Friedrich Ebert Foundation revealed that migrant entrepreneurs create 2.2 million jobs in Germany and that one in six businesses in Germany is owned by someone with an immigrant background. Importantly, migrants found about half of all start-ups in the country.

The Netzwerk IQ’s Integration through Qualification programme is a countrywide initiative with regional nodes. Run since 2005, it is funded by two federal ministries, the Federal Ministry for Labour and Social Affairs, and the Federal Ministry for Education and Research. The initiative receives about €7 million a year. 

The programme provides information and support to immigrants, who often battle with language difficulties or with their work qualifications not being recognised in Germany. The idea is that helping them to source work and get started in entrepreneurial activities may help immigrants to integrate into the German society. Among other things, the initiative develops modules and curricula for language classes which can be adopted by companies and advice centres, and facilitates access to training opportunities. 

In addition, the initiative’s platform “We’re Setting up Business in Germany”10 provides prospective entrepreneurs with information in a number of languages on how to start a business. Complementing this, an expert forum on migrant economy associated with the initiative provides policymakers with insight into the current issues and developments relating to migrant entrepreneurship in Germany. 

 

Impact

 

Between the initial years of 2005 and 2007, IQ network supported more than 12,500 migrants to improve their work situation. Between August 2012 and September 2015 about 55,000 people used the programme to get help on the recognition of foreign qualifications.

 

Germany Reports

Name
Report information
pdf
GEM National Report Germany 2018 / 2019
Report information
pdf
GEM National Report Germany 2017 - Executive Summary
Report information
pdf
GEM National Report Germany 2017
Report information
pdf
  • Year of publication: 2017
  • Category: National Reports
  • Language: German
  • Upload date: 2017-06-08

  • This is the 17th National Report for Germany as part of the Global Entrepreneurship Monitor (GEM). It describes and explains the entrepreneurial activities undertaken in Germany in 2016. It compares the findings with those of the other 64 countries participating in GEM in 2016 and with the data on the previous years. The 2016 GEM national report on Germany provides answers to the following key questions: • How do the entrepreneurial activities here in Germany differ from those in other countries? • How has the volume of entrepreneurial activity changed, and why? • What are Germany’s strengths and weaknesses with regard to the entrepreneurial framework conditions (e.g. funding, support schemes, education/training) compared with other innovation-driven nations? Authors: Rolf Sternberg – Johannes von Bloh
  • URL: http://gem-consortium.ns-client.xyz/report/49838
 GEM National Report Germany 2016
Report information
pdf
GEM National Report Germany 2016 - Executive Summary
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