The clear majority of 59 percent of migrant founders were born abroad and immigrated to Germany. The proportion of academics among migrants, at 91 percent, is significantly higher than the already high proportion of 85 percent in the entire country. Startupecosystem.
Karl-Heinz Paqué, Chairman of the Friedrich Naumann Foundation for Freedom, says:
"People with a migration background are not only socially important, but also economically important for Germany. Numerous studies show that there is a clear connection between diversity and innovation. The startup culture in Germany can become even more diverse, as the Migrant Founders Monitor 2022 shows. Anyone who wants to successfully start a company needs not only economic but also social openness as a prerequisite for success."
Migrant Founders Monitor also highlights problems and discrimination
A lack of financing options poses a barrier for migrant founders: Only one-third of first-generation migrant founders have resorted to government funding, 10 percentage points less than the general average. A similar discrepancy is evident with venture capital: Only 15 percent of first-generation migrant founders have received such financing to date, compared to 20 percent for the general startup average – even though they more frequently seek this form of growth financing. For 35 percent of self-immigrant founders, a lack of networks is a key challenge. For founders who studied abroad, the figure rises to 57 percent.
One-third of immigrant founders report racist experiences during their startup. Among those founders who studied abroad and thus usually came to Germany later, this figure rises to 51 percent. Racist discrimination by authorities and offices, banks, and investors is reported particularly frequently. Gesa Miczaika, deputy board member of the Startup Association, says:
“The lack of openness towards people with a migration background, their inadequate networks and our bureaucracy are a problem for Germany as a business location.”
The Migrant Founders Monitor is available for download here.
