Migrant founders face significant challenges when building businesses in Germany, including accessing capital and forming local networks, according to a new survey.
For years, Germany’s tech scene has benefitted from the input of foreign talent. Foreign-born entrepreneurs make up nearly a quarter (23%) of Germany’s unicorn founders, a survey conducted by the German Startup Association of 1,828 founders found.
Of the 255 survey respondents with a migration background, 91% had a university degree and 56% of that number had a degree in a STEM field.
At a time of severe labour shortages, Germany is keen to attract skilled workers from overseas. The last government under chancellor Olaf Scholz passed a series of reforms to help migrants settle in Germany more smoothly, including streamlining the visa process, lowering salary and language requirements and making it possible for residents to have dual citizenship.
But the framework conditions for settling in Germany and building a business there still need improvement, the report concludes.
“Founders with an immigration background are drivers of growth, innovation, and internationalisation,” says Magdalena Oehl, deputy chairwoman of the German Startup Association.
“The figures clearly show: If Germany wants to remain attractive to international founders, something must change. We urgently need better framework conditions – faster visa processes, multilingual offerings, and an international mindset. If we stew too much in our own juices, we’ll squander our opportunity.”
Networking is one of the top challenges migrant founders face in Germany. While migrants have strong international networks — with 45% rating their international network positively compared to 32% of founders overall — networking locally is difficult. 46% rate their local contacts as good, compared to 57% of founders overall.
The report cites English-language networking events as crucial for lowering barriers to entry for founders and making the German ecosystem more open and inclusive.
Entrepreneurs — irrespective of background — think changes are needed to make the country more attractive for international talent.
While 80% of survey respondents rate the quality of life, security and stability of Germany positively, only 17% rated the conditions for skilled immigration positively.
Read the orginal article: https://sifted.eu/articles/migrant-founders-germany-relocate/
