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Startups benefit from immigrants

To grow and stay competitive, German startups need well-trained IT specialists from abroad. Due to bureaucratic obstacles, every third startup has difficulties employing foreign people.

Germany is an attractive location for founders and employees. Meanwhile startups have become an important engine for jobs in the German economy. According to the German Startup Monitor (DSM), the participating startups are employing 19,913 people in total. On average, about 13 employees per startup. 

The German startup ecosystem needs well-trained IT specialists to continue to grow and keep up with the international competition. Two startups out of three (63.9%) agree with the statement that the German startup landscape benefits from immigrants. In total, 28.6% of all startup employees don’t have a German citizenship, in Berlin it’s even 47.7%.

Challenges with employments

Startups are constantly creating new jobs and planning significant hirings. However, every third startup has problems with bureaucratic obstacles when they want to employ people from abroad. 

When founders employ someone from abroad, in 58.4% of the cases they face administrative barriers in the preliminary stages (e. g. getting a visa). About half of the founders report administrative barriers after employing people (48.4%) as well as language barriers (48.2%) as challenging tasks. 

The lack of comparability between international degrees is a problem for 18.8%, 15.7% consider cultural differences a problem. 13.6% say that their location isn’t attractive to employees from abroad, and only 10.8% indicate that the lack of a welcoming culture causes problems when employing international workers. 

“... a welcoming culture that facilitates the professional’s start into their new life, and an demand-oriented immigration law are essential for Germany. Especially in times of Brexit and protectionism, we need to welcome talents from all over the world!”, explains Florian Nöll, Chairman of the startup association. 

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