Immigrants strengthen German business
This is the current portrait of an entrepreneur from an immigrant family, drawn by experts at the state-owned German bank KfW. This bank is responsible for the government credit program for newly created small and medium-sized enterprises.
According to current KfW data, in 2013 the number of immigrant entrepreneurs who opened new businesses in Germany accounted for 21% of all firms. In total, 868,000 people from other countries permanently residing in Germany dared to take this step. In 2012, this figure was 98,000 less (19%).
The statistics on the nationality of new entrepreneurs are quite interesting. From 2008 to 2013, 21% of all enterprises registered by immigrants were headed by people from Turkey, 10% had Russian roots or citizenship, 7% were ethnic Poles, and another 5% were Italians. As KfW experts note, compared to "native" business owners, migrants are much more likely to create new jobs from the start. At the same time, nearly a quarter of all new enterprises are related to trade.
"Businesspeople with foreign roots are currently the backbone in terms of creating new firms in the Federal Republic," the KfW report states. Such business projects are very important for the entire investment climate in the country, experts emphasize.
At the same time, it is suggested that many immigrants actively use both the knowledge gained in their former homeland and other opportunities related to their knowledge of languages other than German. Almost half of the foreigners who embarked on an independent journey in the world of entrepreneurship last year are under thirty years old. Overall in Germany, only 37% of new business owners have not yet passed the thirty-year mark.
However, in one aspect, entrepreneurs with an "immigration background" still lose out to "native" residents: business owners with foreign roots are more likely to go bankrupt. Thus, 21% of such firms become insolvent within twelve months, and 39% leave the market within 36 months.
On average across the country, 15% of new enterprises cease operations within a year, and 30% within 36 months. But as KfW emphasizes, the nationality and origin of business owners are by no means the decisive factor for bankruptcy. Primarily, it is a lack of experience and practical knowledge that ultimately leads young entrepreneurs to a disappointing outcome.
Alex WEIDEN.
"Russian Germany"