Global Entrepreneurship Monitor (Gem) - Germany 2000 Country Report

The results of the 2000 Global EntrepreneurshipMonitor (GEM) study for Germany reveal that the first steps toward a newculture of entrepreneurship have been taken. In 2000, one in twenty-five adultsattempted to start firms. This is a slight increase over 1999, placing Germanyin sixth position (up from eighth) among the countries participating in theinternational GEM research project. Three investigation methods are used in the GEM studies: an adult populationsurvey; interviews with entrepreneurship experts in that country; and selectednational and demographic data.The GEM model examines general frameworkconditions for economic growth and nine entrepreneurial framework conditions –financial support, government policy, government programs, education andtraining, research and development transfer, commercial and professionalinfrastructure, market openness, access to physical infrastructure, andcultural and social norms. Among the findings:The proportion of the population that providesfunding for startups has increased to 3.94%, placing Germany in fifth position.The proportion of women starting firms has also increased, placing Germany ineleventh position, significantly behind Canada and the United States. Germanyis in a strong second position in the area of available shareholder's equityand debt capital for startup founders. Also, Germany is in position three inpositive regard for state programs promoting entrepreneurship. Areas of weakness for Germany include education, training, and social andcultural values (e.g., a fear of failure) that present obstacles toentrepreneurship. Tax and other state regulations are also perceived asbarriers preventing a positive attitude toward starting firms. Recommendationsfor improving the rate of startups in Germany include adopting these goals:increasing the proportion of women founders; increasing basic knowledge aboutlaunching startups through the German educational system; improving theperception of the barriers presented by regulation; and promoting geographicclusters of startups. (CBS)