More startups in Germany, but too few women founding startups — the KfW Startup Report 2019 paints a mixed picture of the German startup landscape.
Good numbers first: According to the current KfWAccording to the German Startup Report, the number of innovation- or growth-oriented young companies in Germany has increased again. In 2018, there were 70,000 startups, around 10,000 more than the previous year.
The Startup Report considers innovation- or growth-oriented companies that are no more than five years old, are fully operating, and have a founding team or employees. Innovation-oriented means that research and development are being conducted to bring a technological innovation to market maturity or at least offer a German-wide market innovation.
Women are less innovation and growth-oriented in their founding
This definition explains why, according to the KfW study, female founders remain underrepresented in the startup world. The report finds that only 3 out of 100 start-ups by women exhibit these startup characteristics. For men, the figure is 9 out of 100. Accordingly, the average share of female founders in startups between 2016 and 2018 was 19 percent, while the average share of women in start-ups in Germany during these years was 39 percent. This means that women's start-ups are less innovation- and growth-oriented.
The report sees suitable measures to close these gaps as including entrepreneurial skills in schools and increasing the reach of women through advisory services.
He calls for increased efforts to attract women to technical and scientific professions.
Fewer hurdles and more role models
The chief economist of KfW, Fritzi Köhler-Geib, sees a need for action:
"The startup scene in Germany is lacking women. But Germany cannot afford to forgo the innovative impulses and economic dynamism they generate. Therefore, efforts to attract women to technical and scientific careers must be intensified, and barriers removed. Furthermore, economic knowledge and skills should be taught in schools. Last but not least, female founders' access to venture capital must be improved, which would have a positive impact on the entire startup community. More successful role models would encourage other women."
