What kind of people create startups

Capital of young companies : Berlin start-ups create 19,000 new jobs

The title is certain: Berlin, the capital of start-ups. This is now also underlined by the evaluation of a previously unpublished study: There are not as many young companies in Germany as there are in Berlin with so much job potential.

The data is based on the "Berlin Start-up Map" that the Senate Economic Administration had created some time ago. But since it said too little about the employees, dealroom was commissioned to carry out a precise analysis. "The figures that have now been published are not taken from official statistics, but according to the authors they offer the best overall picture of the city's development available to date," it said.

78,000 people are employed in start-ups

According to this, there are 3,000 start-ups in Berlin. 78,000 people are employed in such start-ups - an estimated 19,000 of these jobs have been created in the past two years. Half of the people work in smaller companies that were founded in the past seven years and that only have up to 70 employees.

Around a third of all start-up jobs are in companies with more than 150 employees. The ten largest start-ups provide an estimated 17 percent of the jobs in this industry. The makers of the study had previously made a similar evaluation with start-ups in Amsterdam. In comparison it becomes clear: The Berlin start-ups employ twice as many people as those in the Dutch metropolis.

In 1999 the first start-ups settled in Berlin

With companies such as Jamba, Momox or StudiVZ, the first start-ups settled in the capital from 1999 to 2005. Starting in 2006, Rocket Internet, Zalando, Soundcloud, City Deal and Delivery Hero were added - at that time still started as start-ups. Zalando took first place in the top ten list from the study.

However, the digital fashion retailer Zalando has long since ceased to be a start-up in the traditional sense. After a maximum of five to seven years on the market, a start-up is considered an established company - if it has survived the start-up phase.

Take Yager Development, for example: on Monday it became known that the Chinese games world market leader Tencent is taking a stake in the digital game developer from Berlin.

Most of the FinTechs are located in Berlin

Senator for Economic Affairs Ramona Pop (Greens) said: "The start-ups not only make Berlin attractive, they are also increasingly creating jobs." In addition to the young companies from the technology and digital industries, the capital is also home to most of the FinTechs - i.e. digital financial service providers.

300 of them have settled here, leaving Berlin behind the financial metropolis of Frankfurt am Main online. However, many of the newly founded start-ups do not pay their employees as good salaries as established banks. In order to change that, in addition to Ramona Pop, North Rhine-Westphalia's Minister of Economic Affairs, Andreas Pinkwart (FDP), is in favor of improving the tax framework for young companies.

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The "Welt am Sonntag" reported about it first. “Employee participation schemes are a good way to support start-ups in the competition for the best innovative minds. We are working on specific measures and want to discuss these with our country colleagues in order to derive proper recommendations for action for the federal government. Unfortunately, she overslept the topic, "Pop told Tagesspiegel.

[In our people newsletters we report weekly from the twelve Berlin districts. You can order the newsletter free of charge here: people.tagesspiegel.de]

Christian Miele, President of the Start-up Association, said: "The figures clearly illustrate the importance of start-ups for the Berlin economy today." If you look at the rapid development, it becomes clear that this will be the most important in the future Will be the city's employer - ahead of industry and administration.

It is all the more important that the Berlin Senate supports the scene. For example, by ensuring that the conditions for employee participation are improved in the Federal Council. “Unfortunately, this initiative will not achieve its goal if - as you can read - it is limited to increasing tax exemptions. If we want to solve the problem, we have to tax investments competitively. Just like all other industrial nations have been doing for a long time, ”said Miele.

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