The Global Entrepreneurship Index (GEI) compares 137 countries worldwide across 14 categories to determine their suitability as startup locations. Germany ranks 15th. There is a need to catch up in startup infrastructure and the teaching of entrepreneurial knowledge in schools.
The GEI encompasses both a country's institutional foundations and its population's entrepreneurial qualities. The United States leads the international ranking, followed by Switzerland and Canada.
The German result is ambivalent: For some factors such as internationalization, technology absorption, competition, start-up culture, and process innovation, Germany ranks well between 8th and 13th. However, the situation is different for product innovation (45th), human capital (48th), and networking (61st). The KfW start-up expert Dr. Georg Metzger commented:
"The entrepreneurial qualities of the population are therefore lagging behind in international comparison. However, the institutional quality relevant to start-ups need not fear international comparison."
Package of measures for start-up location
Metzger also suggests possible solutions: Networking could be improved through the expansion of startup infrastructure and communication technologies. He cites broadband access, incubators, startup events, and platforms, among others. Human capital and startup skills could be taught in schools, but also later on through coaching and continuing education. To increase product innovation, he suggests strengthening research collaborations between universities and businesses. Furthermore, the population's openness to technology should be encouraged. However, the expert warns against excessive expectations:
"Success can't be expected overnight. It's all the more important to address weaknesses with patience."
