German SMEs are seeking proximity to young companies: According to a recent study, over 70 percent of them can imagine collaborating with startups. Almost 40 percent have already worked with young companies.
The companies surveyed have generally had positive experiences with startups. Dr. Eduard Sailer, Chairman of the Board of the RKW Competence Center, which conducted the study, says:
"Many SMEs have now realized that collaborating with startups can be worthwhile. Our study also proves this: Over 95 percent of SMEs that have already collaborated with startups would continue to do so in the future."
Chance instead of strategy
The search for innovation is the biggest motivation for SMEs to approach startups. 64 percent want to tap into new technologies, and 61 percent want to develop production innovations with the help of the young companies. Around half of the respondents want to penetrate new markets and meet potential employees. Almost a fifth see startups as an investment opportunity. Interestingly, only one in four SMEs specifically contacts startups. Over 70 percent of contacts arise more or less by chance.
SMEs also value young founders
German startups apparently have a home advantage among local SMEs: One in three companies attaches importance to having a headquarters in Germany. However, personal contact with the founding team is more important, at 51 percent. One in four SMEs feels more comfortable when a startup already has an investor on board. The age of the founders, on the other hand, seems to be losing importance, according to Dr. Matthias Wallisch from the RKW Competence Center:
"While in our study two years ago, one in four SMEs rejected cooperation with startups whose founders were younger than 25, now only around ten percent say so. SMEs have recognized the opportunities offered by collaboration and are open to it."
