Business Creation in Germany— A Slow Climb

This news article talks about reasons why many German star-up companies are gaining fast, but growing slow.

One of the problem is popular attitudes toward founding new business. Few of the German believe founding business is a great idea because most of them would not take the risk, they also fear of the failure of their business. Lack of the finance is a big reason too, big economic of scale causing few of the people got the financial power to get into big and profitable business. Moreover, rather than funding in new business, German companies would more like to invest in current business.

Germen government is trying to stimulate more star-up companies by working with banks and big companies. According to Henry’s blog post, “Germany will be more competitive in business by making its market more flexible and open”. I totally agree with that. In my personal opinion, there are few things government can do to stimulate star-up business and encourage them to star-up big and ambitious.

1. Promoting star-up business loan for lower requirement and larger amount of money. Most of the concerned of star-up business funders is their financial problem, if government can solve this questions for them then more and more star-up business can get up further and higher.

2. Investing successful companies and bank and let them give star-up business funders more support.

Plugging Away

A French firm seeks new roads to profit from electric cars

This news article talks about a French family-owned firm– Groupe Bollore is considering to produce electric cars. Interestingly, this firm was first announced as a paper making company, then turn into a advanced battery producing company.

In my opinion, it is not a good idea for Bollore to get into electric cars market.

Reason 1: The competitors like BMW and Tesla are holding much of the market share, they have more experience in producing electric cars. Also, consumers will always seek for the brand that are most familiar to them.

Reason 2: Bollore has not yet making money on their latest battery develop project. It costs a lot of money and spending more capacity at new plans.

Reason 3: Electric cars market is now not very popular. Although big countries and cities are now promoting this kind of environment friendly car, it is difficult and not convenient for people charging and fixing their car.

My suggestion for Bollore are:

1. If they want to make money by producing electric cars, they can work with some companies that are located in the advanced city which provides better environment for electric cars. They have better consumer base there, and those companies also have advanced technology.

2. Push the electric cars producing plan few years after. One reason for that is to better develop their current battery plans right now. The other reason is that the electric cars market will be better after few years, according to the motor-industry analyst Daniel Schwarz.