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.