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‘German startup founders in general are much more extroverted’

New data based on social science tests reveal that Berlin and Munich founders are similar in that they are more open, creative and extroverted than founders elsewhere across the globe. But they have a few differences too.

'German startup founders in general are much more extroverted'
Photo of team members at a startup: Deposit Photos.

In the study by Founder Institute which looked at data from over 100 cities worldwide, Berlin founders ranked fifth in the world for their openness, trailing behind entrepreneurs in Denver (fourth), Rome (third), Tel Aviv (second) and Athens (first).

Based on data collected from founders in Munich and Berlin, the findings also show that German entrepreneurs are generally more open than their counterparts in Silicon Valley, the rest of Europe and across the globe.

READ ALSO: Berlin v. San Francisco: Which is better for startups?

“The more international or more liberal the city, the higher the openness and creativity,” co-founder of the Founder Institute, Jonathan Greechan, told The Local in a phone interview.

But it goes even deeper than that, says Greechan, who describes openness as a “big five personality trait” that involves creativity in addition to people who are “open to new experiences, who challenge norms and are more likely to take risks.”

Image: Founder Institute.

According to Greechan, a strong correlation exists between one's openness and entrepreneurial success.

The idea of developing a social science test that people could take to evaluate whether they have the potential to become strong entrepreneurs or not dates back to 2006. Back then, Greechan started conducting research on the topic with his now co-founder, Adeo Ressi, after having a hard time finding the right people to hire for their startup.

Since the Founder Institute – which describes itself as an idea-stage accelerator and startup launch program – kicked off in 2009, the results of 30,000 people from all over the world who have taken the test have been analyzed, including over 600 entrepreneurs in the capital city of Germany and the capital of Bavaria.

Having collected years of data, the team at the institute have used the results to determine traits they believe make a successful entrepreneur, regardless of one's locale, idea or demographic.

German entrepreneurs are also among the world’s most extroverted, according to the findings. The institute has found that extroverted people generally display high energy, assertiveness, and sociability; in these areas, too, Berlin and Munich founders displayed higher extroversion compared to their counterparts in Silicon Valley and the rest of the world.

“German founders and European founders in general are much more extroverted,” said Greechen.

“Definitely German founders are good at selling and compared to the rest of Europe, they are more hardworking,” he added, emphasizing that conscientiousness is another big five trait they have tested that aims to determine someone’s industriousness and ability to get things done.

Image: Founder Institute.

But one area in which German entrepreneurs fared lower in comparison to founders across the globe was agreeableness, one of the major traits the institute believes makes a good entrepreneur.

Berlin and Munich entrepreneurs showed lower than average agreeableness, a trait the institute says manifests itself in individual behavioural characteristics that are perceived as kind, sympathetic, cooperative, etc.

Greechan warns though that while agreeableness has to do with friendliness,“if you’re more agreeable that’s not generally a good thing; you want to be somewhere in the middle.”

And while Berlin founders have many similarities with Munich founders, they differ from them too.

The data show that entrepreneurs in Berlin are more creative than their Munich counterparts, something which Greechan speculates is because “Berlin is sort of an artsy city.”

But while Berlin founders have also shown they are more hard-working and extroverted than Munich founders, entrepreneurs in the capital city of Bavaria on the other hand are more agreeable, emotionally stable and have higher fluid intelligence.

Fluid intelligence describes one’s ability to learn and apply a rule set quickly in order to solve problems; it correlates positively with entrepreneurial success, says Greechan. Traits like emotional instability, conversely, correlate negatively.

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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