The last stop on our visit to Europe brings us to Germany -- specifically Dresden, which was part of East Germany before the 1990 unification. The students will be staying with family hosts while we are here.
Entrepreneurship is part economic and part cultural. One of the most striking forces against entrepreneurship in Germany is its culture. Individual enterprise is not a part of the historic culture of Germany.
Young Germans seem to be continuing this non-entrepreneurial value. From the website International Entrepreneurship:
The data about German entrepreneurship speaks volumes. In the 2006 Global Entrepreneurship Monitor (last one with data on Germany), Germany had one of the lowest entrepreneurship rates in the study of less than 5% of the population engaged in early stage entrepreneurial activity (less than half of the US rate within the population). When looking at the motivation for entrepreneurial activity, Germany has the highest rate of entrepreneurs who start businesses out of necessity rather than proactively pursuing opportunities identified in the economy.
Ironically, Germany does lead the pack in one entrepreneurship statistic -- government spending to spur entrepreneurship. More proof that government meddling does little good.
Germany is a society that is grounded in rules, process and order. While this has helped create some very successful large corporations, it has not fueled an entrepreneurial engine to their economy. As the global economy comes out of the recession, this will put Germany at a distinct disadvantage.
Entrepreneurship is part economic and part cultural. One of the most striking forces against entrepreneurship in Germany is its culture. Individual enterprise is not a part of the historic culture of Germany.
Young Germans seem to be continuing this non-entrepreneurial value. From the website International Entrepreneurship:
Entrepreneurship in Germany is low because of the lack of ambition of Germany students. 25% to 30% of young scientists have good chances for creating a business, but only 5% will take this step.Germany also has an historically high tax rate, which has also stifled entrepreneurial activity.
The data about German entrepreneurship speaks volumes. In the 2006 Global Entrepreneurship Monitor (last one with data on Germany), Germany had one of the lowest entrepreneurship rates in the study of less than 5% of the population engaged in early stage entrepreneurial activity (less than half of the US rate within the population). When looking at the motivation for entrepreneurial activity, Germany has the highest rate of entrepreneurs who start businesses out of necessity rather than proactively pursuing opportunities identified in the economy.
Ironically, Germany does lead the pack in one entrepreneurship statistic -- government spending to spur entrepreneurship. More proof that government meddling does little good.
Germany is a society that is grounded in rules, process and order. While this has helped create some very successful large corporations, it has not fueled an entrepreneurial engine to their economy. As the global economy comes out of the recession, this will put Germany at a distinct disadvantage.
I was just discussing generational differences in work ethic/mentality/consumer behavior with my high school Marketing students to prepare them for researching and writing business plans next year. One student asked if geography affected generations as a whole relating to demo/psychographics, business and consumer culture.
Thanks for the insight!