The start-up culture in Germany is developing positively, but according to the “Trendbarometer Young ICT Economy”, more than a third of young entrepreneurs lack the framework conditions for rapid growth. Nevertheless, the startups surveyed expect Information and communication technology (ICT) continues to be a positive development – and rapid growth is at least the goal of all.
“Trend barometer for young ICT businesses” records positive mood among young ICT companies
The young ICT sector in Germany is doing well, according to a surveySix out of ten young ICT companies currently have a healthy order situation, and a full 93 percent expect a positive order trend in the next twelve months. This is a key finding of the "Trend Barometer Young ICT Industry 2015" survey, conducted on behalf of the Federal Ministry for Economic Affairs and Energy (BMWi). The survey included former participants in the "Start-up Competition - ICT Innovative."
In Germany, there is therefore considerable potential for fast-growing, innovative young companies, so-called gazelles. “The ‘Gazelles’ are a source of hope for a renewal of the economy, for growth and job creation from a dynamic start-up activity,” says Dr. Jan Wessels, who was responsible for conducting the study.
New financing options as an alternative
However, financing often becomes a problem: 38 percent of young ICT companies consider their ambitions unfeasible due to unfavorable conditions. Accordingly, almost a third are considering moving abroad because they lack the opportunity to access sufficient growth capital in Germany.
The startups surveyed are very open to alternative financing options. While traditional financing options such as equity and business angels remain at the forefront, alternatives are gaining increasing importance: Venture capital has become more popular among startups as a preferred financing option; 34 percent of ICT start-ups are also open to crowdfunding (up from just 23 percent in 2014).
More positive public perception
According to the startups' assessment, the perception of entrepreneurship in Germany is also changing in general: well over half of them are registering increasingly pro-entrepreneurship tendencies in the media, politics and society.
Since 2011, young ICT companies have been regularly surveyed on behalf of the BMWi about their economic situation, their expectations for the future and current ICT and start-up-related topics.
