Is Germany still interesting for founders? A report by the German Chamber of Industry and Commerce sees Germany as a location for start-ups in dire straits – and suggests measures to improve the situation.
The German Chamber of Industry and Commerce (DIHK) sees historically poor conditions for starting a business in Germany – and warns of serious consequences. “I am very worried about our location,” said President Peter Adrian, commenting on the results of the DIHK report “Starting a Business 2024”.
Last year, the DIHK recorded a six percent decline in its range of advisory introductory meetings for business start-ups – a new low, according to the report.
Despite catch-up effects: DIHK sees no improvement
“In industry, we are almost seeing a gradual departure due to increased production restrictions and migration trends,” said Adrian. “If fewer and fewer people want to start companies in this country, we will lose important potential for growth and innovation.”
The DIHK report states that there has been an increase of 17 percent in individual start-up consultations, which take place in a second step on the basis of concrete business ideas. However, the association does not attribute this development to an improvement in the framework conditions for founders. Instead, catch-up effects can be observed after the Corona period. Projects that had been put on hold are now being tackled, the report continues.
Founders give worse grades
For the report, the DIHK also surveyed 952 founders, start-ups and young companies in January and February 2024. On average, respondents rated Germany as a location for start-ups with a grade of 3.6 – and thus worse than ever, according to the report. Based on school grades, a “still satisfactory” has now become a “sufficient”, the report concludes.
Those surveyed wanted simplified taxation and a reduction in bureaucracy. “The enormous increase in the costs of running a business and the thicket of bureaucratic regulations are currently stifling the desire to be an entrepreneur,” complained DIHK President Adrian. “The signals for a better location policy could hardly be clearer.”
The DIHK has therefore identified the reduction of bureaucratic hurdles as the most important area of action and is proposing nine measures to achieve this. The aim is to streamline forms and make it easier for foreigners to set up companies. The DIHK is also calling for a common contact point for new companies to reduce the workload for founders.
Source: Stern
