Compared with other countries (e.g., the USA, Japan), Germany does not show a positive attitude towards starting a business. There is a series of hurdles that kept Germany’s newly minted entrepreneurs from expanding their business. Although one bank has said that a new start-up is founded every 20 hours in Berlin, there are several limitations that hold back start-up’s steps. It is a big problem about lack of finance. Small companies can only get puny financial support from angel investors and venture capital. It worth noting that Germany has as many venture capital investments as America, but the average investment in Germany is far less than America.

Fear of failure is another problem. It is a sign of failure if entrepreneurs end with bankruptcy, while it is seen as a positive thing in the USA. Germany does not have innovative problem. It has two deficits: one is that the slow increase in IPOs, which cannot create billionaires, mere millionaires. The other is the absence of standard-setting giants like Facebook, which serve as schools and customers for newer ventures. Germany will be more competitive in business by making its market more flexible and open.

Article: http://www.economist.com/news/business/21587209-vigorous-start-up-scene-has-yet-produce-its-first-big-breakthrough-slow-climb

Picture:http://www.berlincitytours.com/blog/2011/06/visiting-berlin/