Reasons Why You Should Set Up a Business in Germany

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Germany has one of the strongest economies in Europe and the world. That is why it has been consistently ranked as the best European country for start-ups.

And not just for natives either, according to this report, migrants start 170,000 new businesses in Germany each year.

In other words, if you are an entrepreneur, you should seriously consider setting up a business in Germany.

It’s not as difficult as you might believe at first, and there are numerous benefits.

Germany previously appeared in our list of 5 countries to get a work visa. In this post, let’s look at why you should start up a business in the Central European country ASAP.

Why You Should Set Up a Business in Germany

1. A strong, dynamic economy

Germany has a very high purchasing power, with a per capita spending power of €24,412 in 2021. It is the top trading nation in the European Union and can lay a claim to being Europe’s strongest economy.

What this means is simply that if you have an idea and a business, you’ll surely have a lot of people who are willing and able to pay for your goods or services.

As a business location, Germany offers more than just its significant spending power. There is an innovative culture and a highly qualified workforce and it is located at the heart of a rich transportation network in the centre of Europe.

Plus, with 62,105 patent applications in 2020, Germany is one of the leading European countries in science and innovative research.

2. A good, stable home for your ideas

There is a national focus on innovation and international exports in Germany, which many businesses are embracing.

The country invested 106 billion euros in research and development in 2020.

Essentially, your fresh ideas can easily find a market.

As a business owner in Germany, you should expect a stable political and economic climate where you can develop your ideas.

And your ideas are legally protected as well. Inventions, corporate logos, and concepts are all protected intellectual property in Germany. The Copyright Act, Patent Law, and Trademark Law are set up to protect your most precious asset – your name.

Excellent ideas are also protected by economic policies: for example, the Competition Law prohibits your competitors from making false statements about your products in order to gain customers for themselves.

3. Your cultural background will help you build your business

Germany is an open-minded country as well as a top destination spot for immigrants. In 2020 alone, almost 1.2 million people migrated to Germany. That’s a lot of people.

Here’s how this can help you: In most cases, you’ll meet immigrants from your home country or region with particular needs that you’ll understand better than most Germans. Providing a solution to these needs is an opportunity for a business.

For instance, if you know that the people from your country are often in need of a specific kind of product. You could think of ways to begin supplying these products to them.

Also, you can leverage your connection with people from your home country or region to set up your initial customer base. If they resonate well with you, they will patronise your business – until you’re able to build a much larger base.

4. You will receive professional support and funding

There are many choices to make when starting up a business in a major European city. As a matter of fact, there are multiple start-up alternatives to choose from in Germany.

But there are equally various information centres in the country that provide thorough guidance on how to start a business, the best techniques, and where to get funding.

Every German state has a professional information centre for aspiring entrepreneurs where you can get free help.

These centres will aid you in finding appropriate networks as well as answer any questions you have about funding and any other topics. Government assistance programs may also help you with funding. Click here for a quick check.

Other international entrepreneurs, whom you can meet in start-up networks or at information centres, can also provide helpful advice.

What you really need to get started is your business idea.

5. Become part of a diverse society

If you do decide to start up a business in Germany, you will be picking a country with more than ten million people from different nations – including yours.

As a result of the constant influx of immigrants, Germany has developed a culture that welcomes a diversity of people. People from different cultures and religions live together and a vibrant international art and cultural scene has emerged.

The high quality of life and stable democracy both contribute to people living in harmony.

All of this also means that Germany is a great place to raise your children. They will benefit from the diversity and learn about other peoples and cultures, ensuring they are more progressive and open-minded.

Family is taken seriously in Germany. That is why more than 11 million families with children live there. German policy-makers and companies consider personal and family welfare to be very important. Parents are provided with many ways to reconcile work and family life. For instance, children in Germany are generally entitled to a place in childcare.