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Digitalization: Ministry of Economics: Progress in start-up strategy

Digitalization: Ministry of Economics: Progress in start-up strategy

The federal government wants to make it easier for start-ups in Germany, but has not achieved the goal in some projects. When it comes to start-up density per capita, the Federal Republic is left behind by other countries.

More than a year after the adoption of a start-up strategy, the federal government sees progress – but at the same time there is a need to catch up in some areas.

Anna Christmann, the Ministry of Economic Affairs’ representative for the digital economy and start-ups, said that 45 percent of the measures that the federal government had planned had been implemented. We want to make progress on other points. The Green politician gave the example that start-ups can more easily apply for public contracts. When it comes to administrative digitalization, the federal government is not yet “where we should be.” In the past, a lot of things were left behind with digitalization.

The federal government is working on linking online services in order to get closer to the goal of a single point of contact for start-ups, as can be seen from an initial progress report on the start-up strategy, which was first reported by the “Handelsblatt”. The aim is to create an integrated, fully digital solution for the entire start-up process.

An important part of the strategy is to make it easier for young start-up companies to obtain venture capital to advance their development. According to the report, the Growth Fund Germany, which is intended to mobilize private capital from institutional investors for start-up financing, has started operations. The target volume of the fund is up to one billion euros.

Employees should benefit from company success

The federal government also wants to ensure that employees benefit more from the success of their own company. This is one aspect of a “Future Financing Act”, the draft of which was approved by the Cabinet in August.

According to the progress report, around 2,600 start-ups were founded in Germany last year – 18 percent fewer than in 2021. This year, start-up activity has picked up speed again. Given the high level of uncertainty, more than half of the start-ups currently find it difficult to assess future business development. In particular, higher interest rates and inflation presented many companies with particular challenges.

There are currently 31 “unicorns” in Germany, i.e. start-ups with a company valuation of at least one billion dollars. This puts Germany in fifth place internationally. Countries like the USA and Israel have more than five times as many unicorns per capita as Germany.

Source: Stern

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