The German startup scene is male-dominated, academic, and dislikes bureaucracy. This has long been known and is now once again confirmed by a study from Commerzbank:
According to the study, the proportion of female founders in Germany is only 22 percent.
57 percent of those who start a business have attended and successfully completed a university or technical college. Only about one-fifth have completed an apprenticeship, and six percent have no vocational qualifications.
45 percent view bureaucracy, regulations, and laws as the biggest hurdles when starting a business. 24 percent named tax-related issues (multiple answers were possible).
However, the Commerzbank also asked not only about the background and concerns of founders, but also about their motivation and goals:
According to their own statements, 47 percent of entrepreneurs started their businesses to “be their own boss” or “build something of their own.” 39 percent wanted to implement a specific business idea. Far fewer respondents were motivated by making more money (22 percent) or creating jobs (14 percent).
The most important goal in the first year of business was customer acquisition (46 percent). About one-third of the respondents also aimed to achieve revenue (36 percent) or profit (32 percent).
When it comes to financing their startups, the respondents said…
…that the vast majority used their own savings (78 percent). Only a few received money from business angels (5 percent) or venture capital (4 percent). Similar findings were made recently in a study by the German Startups Association.
Around one-third of the founders began their businesses with startup capital of 20,000 euros or less (32 percent). Another 30 percent had between 20,000 and 50,000 euros. For almost half of the startups (46 percent), this amount was depleted within six months.
Once the initial phase is over, new obstacles often arise:
31 percent view the shortage of skilled workers in Germany as the biggest obstacle to the further development of their startup. Recently, the OECD warned that Germany is only moderately attractive to highly qualified foreign workers.
Around one-third of the founders began their businesses with 20,000 euros or less in startup capital (32 percent). Another 30 percent had between 20,000 and 50,000 euros. For nearly half of the startups (46 percent), this amount was exhausted within a maximum of six months.
After the initial phase, new challenges often emerge:
31 percent see the shortage of skilled labor in Germany as the biggest obstacle to the growth of their startup. Recently, the OECD warned that Germany is not very attractive for highly skilled foreign workers.
Nevertheless, 63 percent rate Germany as a good or very good location for startups, and seven out of ten respondents would “definitely” start a business here again. Only six percent disagree.
For the Commerzbank study, the market research institute Ipsos conducted around 3,000 telephone interviews with entrepreneurs in Germany last summer. The sample is considered to be representative.
