Germany’s Startup Dynamism Looses Steam

The FDP calls for startup scholarships and more capital for innovative entrepreneurs

At the end of 2016, there will be approximately 33,000 fewer businesses in Germany than at the beginning of the year. The number of start-ups also declined noticeably in 2016. Economists argue that, among other things, a poor start-up cultural environment and a low capital risk are to blame. These are the findings of a study by the HHL Leipzig Graduate School of Management conducted on behalf of the FDP parliamentary group chairman conference.

HHL Rector Prof. Dr. Andreas Pinkwart points out that the economic development of Germany is critically dependent on the power of innovation and on successful and fast-growing start-ups. “The conditions for innovative start-ups in Germany are not good enough to initiate a trend towards more start-ups,” says Pinkwart. In other countries, such as the USA and China, up to 20 times more growth capital would be available to new companies.


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