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This is how the city council sees the Munich startup ecosystem

Is Munich a good location to found a startup? What measures can city policy take to encourage even more founders to settle here? We will pose these and other questions to representatives of the Munich City Council at the Munich Startup Festival on July 17. We have already asked the participating parliamentary groups for their opinions in advance.

In recent years, Munich has blossomed into a true hotspot for innovative startups. With a vibrant startup scene, numerous tech companies, and renowned research institutes, the Bavarian capital offers young entrepreneurs a wealth of opportunities. But what's next? What plans and visions does the Munich City Council have to promote this growth? This is precisely what the Munich Startup Festival will focus on on July 17. Under the title "Visions for the Munich Ecosystem: Questions and Answers from the City Council," four city council representatives will field questions from the startup community. To get an idea of what to expect, we'll take a look at the different positions of the parliamentary groups.

What is the current situation?

We asked the four participating city councilors: If you wanted to start a startup, which city would you choose? What does Munich offer that other German cities don't?

The majority of the groups agreed on this. Felix Sproll, city councillor of the SPD / Volt faction, summarizes:

"Within the EU, I would always choose Munich when founding a startup. Munich offers excellent infrastructure, strong networks, and a high quality of life that is attractive to professionals from all over the world. Furthermore, our city is a major financial and technology center with many potential partners and investors."

Things looked completely different Fritz Roth, City Councillor of the FDP Bavaria Party:

"Mainz would be a good location. Munich would not. Munich has significantly lost potential over the past four years. […] The administration seems to care absolutely nothing whether a new company comes there or not. This lazy and comfortable policy is fatal, especially since other obstacles from the state and federal government are added on top of that."

What plans does the city council have?

We wanted to know: What plans do you have to support young entrepreneurs and offer good conditions so that they continue to settle in Munich?

Manuel Pretzl, parliamentary group leader of the CSU with Free Voters, says:

"A problem in this city is and remains the scarcity of space and the associated high rents. We, the CSU/FW in the city council, recently proposed expanding and densifying the municipal and thus more affordable commercial space in Munich, and also allocating it to start-ups."

The proposal from Sebastian Weisenburger, City Councillor of the Green Party – Pink List:

"In view of the current economic and political situation, a joint effort at the European level is needed to ensure that the key future industries and tech startups in Germany and Europe find favorable conditions. The positive steps taken so far at the EU and federal levels must be significantly strengthened and even better coordinated."

And Sproll (SPD / Volt) notes:

"For me, [supporting startups] primarily includes easier access to financing, the provision of discounted office and work space, and networking events. At the same time, cooperation with universities and research institutes in the region should be intensified and simplified."

What is missing in Munich’s ecosystem?

Our final question: Which industries are underrepresented in Munich? What would you do to encourage more startups from these sectors to settle here?

Roth (FDP Bavaria Party) explains:

"Crafts and industrial manufacturing are clearly underrepresented. While the entrepreneurial mix is broad, it is overall too service-oriented."

According to Roth, in order to promote craftsmen and industrial production, there needs to be significantly more mixed-use areas with space for workshops and manufacturing companies, more affordable commercial space for startups, and better public transport connections to the surrounding area, including for the transport of goods.

Also Pretzl (CSU / FW) says:

"I believe Munich is wasting enormous potential in the combination of traditional crafts and startups. Unfortunately, we hear from many craft businesses that the current Green-Red coalition government is making life difficult for them. This will soon lead to a situation where we'll have people tinkering with flying taxis and robots around the corner – but no one who can fix a broken toilet. We should therefore also provide more support for start-ups in the craft sector, for example, by providing suitable space in commercial parks."

The view of Weisenburger (The Greens – Pink List):

"Munich has high rent and labor costs – this particularly affects the skilled trades, retail, and the cultural and creative industries. We are trying to provide targeted support here with various initiatives: with commercial space optimization, digital parking permits for skilled tradespeople, the piloting of digitally bookable delivery and loading zones, measures to digitize retail, and a dedicated municipal team for the cultural and creative industries, which also provides support in the search for premises. A newly established guidance office in the KVR is intended to help companies navigate the administrative network in the future."

Whether it is funding, regulation or international networking – the sometimes significantly differing viewpoints promise an exciting round of discussions. Anyone who would like to submit their own questions can now do so using this form.

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