A recent study asked founders what motivated them to become self-employed. One in three respondents wanted to improve the world with their startup. Only a few startups are founded out of necessity.
The most common motive for founding a business is the desire to implement an idea oneself. 70 percent of the more than 300 founders surveyed by the digital association Bitkom started their company for this reason. 68 percent wanted to build something of their own. 36 percent want to improve the world with their startup—the third most common answer. 30 percent founded a business to be their own boss and not be employed. Fifteen percent want to become rich and three percent famous with their own business. Only two percent said they wouldn't have found an interesting job otherwise. Bitkom President Achim Berg says:
"In Germany, we have many bright minds, many good ideas, but far too few founders. More people should take the step from their potentially world-changing idea to starting a business."
Startups need an average of 3.1 million euros
The Bitkom study also provides an overview of startup activity in Germany. The figures show that startups employ an average of 16 people. Three out of four plan to create new positions this year. This makes startups a significant job generator. At the same time, more than half of the companies surveyed have already been unable to fill a position due to a lack of suitable candidates.
The demand for qualified personnel may also be the reason why startups are clustering in major hotspots. Every second startup surveyed in Germany comes from one of the three largest locations: Berlin (28 percent), Munich (11 percent), or Hamburg (11 percent).
Almost three out of four companies surveyed require fresh capital for the next two years, averaging €3.1 million. This represents a significant increase from €2.5 million in 2017. However, four out of five startups are confident they will obtain the necessary funding.
