Germany is a better startup location for innovative young companies than its reputation. Whether it's sales opportunities, infrastructure, or the labor market—most founders are satisfied in virtually all areas. With one exception: Startups are annoyed by offices and authoritiesThis is the result of a survey commissioned by the digital association Bitkom among more than 300 German startups.
Around two out of three founders (63 percent) state that they are dissatisfied with the handling of official matters, for example when it comes to contact with administrations, the accessibility of public bodies or the support requested there.
"Startups are working on solutions for the digital world and are held back by an analogue administration. If politicians are serious about supporting startups, they must start with government offices and authorities."
says Bitkom President Achim Berg.
"Governments could also benefit directly from startups. There are a number of founders who have ideas for digital administration."
Reduction of bureaucracy in the coalition agreement: Startups are confident
The coalition agreement includes a number of measures to relieve startups of bureaucratic tasks—and these measures are widely welcomed by founders. Three-quarters (78 percent) say that a one-stop shop for company formation would be helpful for their startup. Seven out of 10 founders (71 percent) say this about the plan to exempt startups from monthly advance VAT returns for the first two years. Seven out of 10 (71 percent) also support the plans for a digital citizen portal for businesses, in which all administrative services would be interconnected across all authorities.
Quality of life is a big plus
In addition to bureaucracy, founders are also rather dissatisfied with other location factors. One in two criticizes the cost and availability of commercial space, as well as access to financing sources (49 percent each), followed by local funding programs (40 percent) and the staffing situation (37 percent), such as salary levels and the availability of skilled workers.
The founders, on the other hand, are particularly satisfied with the quality of life at their startup's location (94 percent), the market environment such as access to customers and suppliers (83 percent), the infrastructure such as transport connections and broadband availability (80 percent), as well as the existing startup network and the quality of local educational institutions (78 percent each).
