Two studies examine the Collaboration between startups and medium-sized companiesThe analyses show where the exchange between the old and new economy still has problems.
A study by the Technical University of Munich commissioned by HypoVereinsbank found that over half of companies with more than 100 employees collaborate with a startup. A study by the digital association Bitkom also focuses on smaller companies: 61 percent of companies with 20 or more employees do not collaborate with startups. Among medium-sized companies with 50 to 499 employees, the figure is 66 percent. In contrast, only 41 percent of companies with 500 or more employees do not collaborate with startups. Bitkom President Achim Berg advocates cooperation between old and new economy:
"Small and medium-sized businesses in particular often struggle to actively shape digitalization and leverage it for their own business. Startups can provide important support in this regard—and they can also benefit from the experience and contacts of established companies."
“Companies should give it a try”
Overall, only one in three companies surveyed by Bitkom cooperates at least loosely with a startup. 10 percent develop products or services jointly. 9 percent of companies have financial investments in startups. The rule here is: the larger the company, the more likely it is to invest in a startup. Among companies with 20 to 49 employees, only 6 percent hold a startup stake, while among companies with 50 to 499 employees, the figure is 19 percent, and among large companies with 500 or more employees, around one in two (48 percent) does so. Berg calls on SMEs to cooperate more:
"Especially smaller companies should dare to try to enter into cooperations with startups. There are now corresponding places and opportunities for networking almost everywhere in Germany and, last but not least, the Federal Government's Digital Hub Initiative."
On the startup side, things look quite different: 60 percent of the founders surveyed stated that they develop products or services together with established companies, while 43 percent collaborate with established companies in other ways, such as through startup competitions. Established companies have a financial stake in around one in five startups. Only 14 percent say there is no collaboration at all.
“Partnerships with startups are important drivers”
According to the TUM study, from the perspective of SMEs, startups' immature business concepts are the most common problem. Almost one in three companies that have already collaborated with a startup criticizes this issue. Around one in five criticize the partnerships' insufficient budgets and the inexperience or poor qualifications of the startup teams. Cultural differences between established companies and startups led to problems in one in six cases. Prof. Dr. Isabell Welpe, Chair of Strategy and Organization at the Technical University of Munich and scientific director of the study for HypoVereinsbank, says:
"Even if cultural differences aren't seen as the biggest hurdle to collaboration, the gap between established companies and startups is a problem for many respondents. It primarily affects technical vocabulary and interactions. Direct exchange between established and young companies is therefore important. It creates mutual trust and forms the basis for long-term, successful collaborations. Strategic partnerships with startups or targeted investments are undoubtedly important drivers for many companies in the further development of their business models."
