Young people do not risk starting a business

Posted by Abdullah Abdul Aziz | Sunday, June 05, 2011

Enterprising Germans are not more likely. Compared with people from other countries, this country only a few tend to start a business. And the trend seems to be the new report by Global Entrepreneurship Monitor (GEM), which was from the Institute of Economic and Cultural Geography at the University of Hannover and the Institute for Labour Market and Employment Research (CIS) was compiled, also to be different.

In Germany in the last 3.5 years, 4.2 percent of people between 18 - and 64-year-old founded a company, or were well on the road. Even the lower the ratio, especially in Italy, but also in Japan, Belgium and Denmark. In other comparable countries do much more to be independent, in the U.S. and the Netherlands, Great Britain, Ireland, South Korea, Norway and Australia are six times more, even in Iceland more than 10 percent. German considered pessimistic and risk averse. Whereas there is good infrastructure and business support are considered relatively good, but in the schools would be carried out no preparation, social values are not conducive to starting a business, also new companies also have little chance of orders .

However, the situation is so bad, because when it comes to business creation or intention of his case, Germany is well in midfield, while Japan and especially in Italy, here also ranked at the bottom. Since he won by different cultures, which is seen in the fact that immigrants in Germany significantly more often as a German company. One in four of the founders have to study based on surveys of immigrants. While 4.2 percent among non-migrants, there is a 7 percent among immigrants. This obviously plays to the result is not so important that unemployment is higher among migrants. Although most German immigrants say they are for lack of creating alternative enterprises, but the difference is not very large.

One would think that immigrants who leave their homeland and given the quest to start a new life in another country, are willing to take risks. In this sense, but is the difference between migrants and non migrants. It is possible that immigrants take low risk aversion of the Germans, then one might expect. The orientation of ethnic networks that fear of discrimination and lower binding in the institutions could support the inclination to entrepreneurship, the authors speculate. This could also talk about having the "native grounds" 37 percent have a college degree, among the migrants, only 12 percent, from which one could conclude that migrants companies' less innovative and less than media "were.

After the interviews this is confirmed or not. Rather it seems that the creation of companies employed more immigrants. It appears that immigrants are good for German culture and ensure greater economic initiative. Although not as strong evidence of increased risk of unemployment as the reason, say the authors:

"Immigrants are what make a virtue of necessity. Through their professional autonomy on the one hand they promote their own personal monetary integration in Germany, on the other hand, are making an important contribution to the German economy."

The reason may also be important, because obviously, young people in Germany have less and less desire to participate in the adventure of starting a business. 2002, 14 percent of all the founders of 18 - to 24-year-old of 2010, there were only 3.5 percent: "The magnitude of this phenomenon is higher in Germany than in other countries and can not be alone the induced population decline in the population of these age groups justified, "say the authors. Besides this phenomenon to be rather depends, as a matter of setting something in the legs, the reasons would be interesting.