Entrepreneurship in Germany – An international comparison

Bundesverband Deutscher Volks- und Betriebswirte e.V.
Fachgruppe Internationale Wirtschaft
Bundesverband Deutscher Volks- und Betriebswirte e.V.
Fachgruppe Internationale Wirtschaft
International German Management Association Review, No. 1 (2007)
ISSN 1866-0479 (Print)
ISSN 1866-1386 (Internet)
Entrepreneurship in Germany –
An international comparison
Thorsten Böth*/ Cornelia Scott**
* Thorsten Böth, Scientific Assistant, University of Wuppertal (Germany).
** Cornelia Scott, Professor for International Management and International Finance,
Anhalt University of Applied Sciences, Bernburg (Germany).
1
Bundesverband Deutscher Volks- und Betriebswirte e.V.
Fachgruppe Internationale Wirtschaft
2
Bundesverband Deutscher Volks- und Betriebswirte e.V.
Fachgruppe Internationale Wirtschaft
Introduction
Only one fifth of the German candidates interviewed in a recent study were of the opinion
that the chances of establishing a company in the next six months were positive
(Sternberg/Brixy/Hundt, 2007, p. 5). This is despite the fact that Germany takes first place in
the area of public subsidies. A look at the results of a recent study highlights the strengths
and weaknesses of Germany in an international comparison.
Entrepreneurship in Germany
Little research was undertaken in the 1950´s and 1960´s on people establishing a new
company in Germany. This might be explained by the German „Wirtschaftswunder“ that took
place at this time. It was in particular driven by large companies and the individual
entrepreneur played less of an important role (Bürderl, J., 2004, column 215). However, the
economic crisis in the 1970´s resulted in a change in consciousness and the individual
entrepreneur became more important again.
If the rate of self-employment is used as an indicator for the business establishments in
Germany then it can be seen that there has been a gradual decline in the number. It reached
its low in 1981 at only 7% self-employment rate (Bürderl, 2004, column 217). Since then the
self-employment rate has been increasing and has been at somewhere between 10 and 11
percent in the last couple of years.
In the following analysis which includes all the factors relevant for starting a company it
becomes apparent that Germany is only average in an international comparison
(Sternberg/Brixy/Hundt, 2007).
3
Bundesverband Deutscher Volks- und Betriebswirte e.V.
Fachgruppe Internationale Wirtschaft
The Global Entrepreneurship Monitor Study
The Global Entrepreneurship Monitor (GEM) is a study carried out in 42 countries annually.
The world-wide database from 1998-2006 is based on 9.000 expert interviews and 770.000
interviews with representatively chosen members of the public and is regarded as the largest
and most up-to-date world-wide analysis in the area of business entrepreneurship
(Sternberg/Brixy/Hundt, 2007, p. 7).
In spring 2007 the GEM for 2006 was published and compares the German entrepreneurial
activities with that of other countries and presents this empirically. In 2006 in Germany 71
expert interviews and 4.000 interviews with representational members of society were carried
out.
The German basic conditions in an international comparison
The conditions that are relevant for establishing a company were carried out based on expert
interviews and are weighted equally as follows (Sternberg/Brixy/Hundt, 2007):
•
•
•
•
•
•
•
•
•
•
•
•
•
The public subsidy infrastructure
Priorities and dedication (politically orientated)
Protection of intellectual property
Physical infrastructure
Knowledge and technology transfer
Consultants and suppliers for newly established companies
Finance
Regulation and taxation policy
Market entry barriers
Market changes
Entrepreneurial education at school
Societal norms and values
Entrepreneurial training out of schools
One the whole Germany was able to improve its position in comparison to 2005 from 20th
place to 16th place in 2006. However, compared to 2004 (10th) and 2003 (13th) its ranking
has decreased.
As in previous years the USA once again takes first place, followed by Singapore, the UAE,
Island, Belgium and Finland.
4
Bundesverband Deutscher Volks- und Betriebswirte e.V.
Fachgruppe Internationale Wirtschaft
Country ranking and its development from 2003-2006
2006
2005
2004
2003
USA
1
1
1
1
Singapore
2
2
3
2
UAE
3
-
-
-
Iceland
4
6
7
12
Belgium
5
8
15
17
Finland
6
3
4
5
Australia
7
17
9
9
Denmark
8
13
14
14
Great Britain
9
10
-
18
Netherlands
10
15
11
11
Ireland
11
7
5
6
India
12
-
-
-
Norway
13
15
13
21
Indonesia
14
-
-
-
Greece
15
24
19
25
Germany
16
20
10
13
Spain
17
19
15
20
Malaysia
18
-
-
-
Latvia
19
21
-
-
Phillippine
20
-
-
-
Mexico
21
-
-
-
31
27
28
-
-
-
30
22
-
25
-
19
-
-
-
-
8
Croatia
Czech Republic
Hungary
Chile
Columbia
22
24
25
Thailand
27
14
South Africa
28
22
Slovenia
29
27
Russia
Italy
30
20
22
26
-
-
-
29
-
24
Argentina
32
28
25
27
Jamaica
33
26
-
-
Turkey
34
-
-
-
Brazil
35
33
28
30
-
29
-
-
-
-
Peru
Uruguay
36
Source: Sternberg/Bergmann/Lückgen (2004); Sternberg/Lückgen (2005); Sternberg/Brixy/Schlapfner
(2006); Sternberg/Brixy/Hundt (2007).
5
Bundesverband Deutscher Volks- und Betriebswirte e.V.
Fachgruppe Internationale Wirtschaft
But what the individual factors look like in an international comparison could give us some
information about how easy or difficult it is to establish a company in these different
countries. As was previously mentioned at the beginning of the article Germany ranks first
place in the public subsidy infrastructure (2005 4th place).
Germany is 8th place (2005: 12th place) concerning the priority and dedication of start-ups
by politics and 9th place (2005: 15th place) in the area of protection of intellectual property
and 11th place concerning physical infrastructure for example the quality of transport and
telecommunication data high-ways (2005: 13th place).
Germany fell from 11th place in 2005 to 13th place in 2006 in the area of knowledge- and
technology transfer. This area describes the contribution of knowledge and specific
competencies from public research centres and their positive economic effect in the form of
value contribution and the creation of new jobs.
Other factors are less positive in Germany, for example it is 15th place (2005: 19th place) on
the point consultants and suppliers for newly established companies. In the case of
finance Germany has improved and is now 16th place (2005: 22nd place), and 17th place
(2005: 21st place) in the area of regulation and taxation policy. Germany ranks 19th place
in the market entry barriers (2005: 21st place) and 24th place (2005: 14th place) in the
market changes.
With regard to entrepreneurial education at schools Germany is very weak and only 31st
place (2005: 29th place). Concerning social values and norms that influence the image of
the businessman in society Germany is only 34th place (2005: 25th place). The out of school
entrepreneurial training that includes training at universities of applied sciences and
universities is only 35th place (2005: 27th place). In the point of support for women starting
up a business Germany has slipped from 30th place in 2005 to 36th place in 2006.
6
Bundesverband Deutscher Volks- und Betriebswirte e.V.
Fachgruppe Internationale Wirtschaft
Countries that were not evaluated in 2006
2006
2005
2004
2003
Canada
-
4
5
4
Jordan
-
5
17
-
Switzerland
-
9
-
10
Austria
-
11
-
-
China
-
12
2
15
New Zealand
-
18
8
7
Puerto Rico
-
23
-
-
Venezuela
-
32
-
31
Israel
-
-
12
-
Uganda
-
-
18
29
Poland
-
-
23
-
Japan
-
-
24
-
Portugal
-
-
26
-
Ecuador
-
-
30
-
Hong Kong
-
-
-
3
France
-
-
-
15
Sweden
-
-
-
23
Source: Sternberg/Bergmann/Lückgen (2004); Sternberg/Lückgen (2005); Sternberg/Brixy/Schlapfner
(2006); Sternberg/Brixy/Hundt (2007).
Conclusion
The international analysis of the basic conditions for starting-up companies which has been
presented above has shown clearly that although Germany has introduced many incentive
programmes in recent years at a Federal and State level it still only ranges average when
compared internationally.
If one compares Germany to other industrial nations that have a better ranking then one
could possibly derive some measures for politics that would create a better path and possibly
even a better “culture for self-employment”. For example with the help of politics Germany
could further develop training for self-employment at schools and institutes of higher
education and improve the image of the entrepreneur and its role for a dynamic economy.
However, less bureaucracy and a reduction in political barriers should also be undertaken
and the environment for innovation further developed.
7
Bundesverband Deutscher Volks- und Betriebswirte e.V.
Fachgruppe Internationale Wirtschaft
There is no panacea for the way to a better „entrepreneur culture“ but perhaps lessons can
be learnt from other countries that are successful.
References
Brüderl, J.: Entrepreneurship. In: Schreyögg (Hrsg.): Handwörterbuch der Unternehmensführung und
Organisation, Stuttgart 2004, column 215-222.
Sternberg, R./Bergmann, H./Lückgen, I.: Global Entrepreneurship Monitor (GEM). Länderbericht
Deutschland 2003, Köln: Wirtschafts- und Sozialgeographisches Institut, Universität zu Köln, 2004.
Sternberg, R./Brixy, U./Hundt, C.: Global Entrepreneurship Monitor (GEM). Länderbericht Deutschland
2006, Hannover: Institut für Wirtschafts- und Kulturgeographie, Universität Hannover, Nürnberg:
Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit (IAB), 2007.
Sternberg, R./Brixy, U./Schlapfner/J.-F.: Global Entrepreneurship Monitor (GEM). Länderbericht
Deutschland 2005, Hannover: Institut für Wirtschafts- und Kulturgeographie, Universität Hannover,
Nürnberg: Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit (IAB), 2006.
Sternberg, R./Lückgen, I.: Global Entrepreneurship Monitor (GEM). Länderbericht Deutschland 2004,
Köln: Wirtschafts- und Sozialgeographisches Institut, Universität zu Köln, 2005.
8
Bundesverband Deutscher Volks- und Betriebswirte e.V.
Fachgruppe Internationale Wirtschaft
Impressum
Fachgruppe Internationale Wirtschaft / Prof. Dr. C. Scott
Bundesverband Deutscher Volks- und Betriebswirte e.V. (bdvb)
International German Management Association Review
ISSN 1866-0479 (Print)
ISSN 1866-1386 (Internet)
International German Management Association Review erscheint fortlaufend als Print- und
Onlineausgabe und behandelt aktuelle Themenbereiche aus Praxis und Wissenschaft mit
internationalen Bezug.
Editor
Prof. Dr. Cornelia Scott, Anhalt University of Applied Sciences, Germany
Co-Editors
Dr. Richard Bennett, Southern Polytechnic State University, USA
Dipl.-Ök. Thorsten Böth, University of Wuppertal, Germany
Prof. Dr. Habil. Anna Karwińska, Cracow University of Economics, Poland
Dr. MSc Gilad Livne, Cass City University London, Great Britain
Prof. Dr. Rolf Seringhaus, Wilfrid Laurier University, Canada
Kontakt zum Herausgeber
Prof. Dr. Cornelia Scott (Editor International German Management Association Review)
Fachgruppe Internationale Wirtschaft
Bundesverband Deutscher Volks- und Betriebswirte e.V. (bdvb)
Florastraße 29
D-40217 Düsseldorf
Tel. 0211/37 10 22
Fax 0211/37 94 68
Email: [email protected]
Internet: www.bdvb.de
www.fg-int-wirtschaft.bdvb.de
ISSN 1866-0479 (Print)
ISSN 1866-1386 (Internet)
9
Bundesverband Deutscher Volks- und Betriebswirte e.V.
Fachgruppe Internationale Wirtschaft
10
Bundesverband Deutscher Volks- und Betriebswirte e.V.
Fachgruppe Internationale Wirtschaft
Viele Vorteile für Mitglieder
Im Mitgliedsbeitrag enthalten:
• Ihre persönliche Email-Adresse und Mailbox
•
gewährt Ihnen den Zugang zu besonders attraktiven Vergünstigungen
und Serviceleistungen und der bdvb-Networking-Plattform „bdvbnet“.
• Immer informiert durch:
die „WirtschaftsWoche“, 52 x pro Jahr
die „Handelsblatt Junge Karriere“, monatlich für Studierende und Absolventen
(auf Wunsch bis 2 Jahre nach dem Examen)
das Mitglieder-Magazin „bdvb-aktuell" (quartalsweise) und die
Sonderhefte „bdvb-special"
www.wirtschaftspresse.biz bietet Ihnen online das täglich
erscheinende Handelsblatt als ePaper und die WirtschaftsWoche als
eMagazin. Damit verbunden ist eine Archivsuche in beiden Medien seit
1984 und eine Speicherung von Suchaufträgen mit persönlicher
Ablage.
www.bdvb.de - das Online-Angebot im Internet, monatlicher bdvbVeranstaltungs- und Wirtschaftskarriere-Newsletter
• Studien- und Berufskontakte über die Karrierebörsen (online über www.bdvb.de)
• Arbeitsrechtliche Erstberatung durch einen Fachanwalt im bdvb
• Regionale Veranstaltungen der Bezirks- und Hochschulgruppen sowie
bundesweite Fachtagungen und Weiterbildungsangebote
• Vorträge, Workshops, Unternehmensbesichtigungen
• Berufsbezogene Fachgruppenarbeit in über 20 Fachgruppen
• Nützliche Kontakte – Informationen – Tipps – Empfehlungen
• bdvb-DKB-VISA-CARD, die die Vorteile von Mitgliedsund Kreditkarte zu Bestkonditionen vereint
• Der Mitgliedsbeitrag kann steuerlich berücksichtigt werden
Sie erhalten Vergünstigungen bei:
Literatur, Karriereberatung, Weiterbildungsseminaren, Tagungen, Versicherungen,
Finanzdienstleistungen, Kultur, Hotels, Mietwagen, Reisen, Sport, Kommunikation.
Vorteilhafte Doppelmitgliedschaft mit anderen Verbänden: Deutscher
Fachjournalisten-Verband, „die Führungskräfte“, GABAL, List-Gesellschaft, VAV,
VÖWA.
www.bdvb.de
11
Bundesverband Deutscher Volks- und Betriebswirte e.V.
Fachgruppe Internationale Wirtschaft
12