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IMMIGRATION

Germany sees increase in number of startups ‘launched by people with migrant background’

Germany is benefiting from an increasing number of businesses founded by people with migration roots, a study has found.

Germany sees increase in number of startups 'launched by people with migrant background'
Archive photo shows a co-working space in Berlin. Photo: DPA

More than one in four business startups last year were founded by foreign people or those with migrant roots, a new study has found. 

And according to research by KfW Bank, the proportion rose significantly last year.

It comes after Mainz-based BioNTech, which was co-founded by a couple who are both children of Turkish immigrants to Germany, was thrust into the spotlight around the world due to their potential coronavirus vaccine.

BioNTech was founded 12 years ago by oncologist Ugur Sahin and his wife Özlem Türeci. Sahin, who was born in Turkey and later came to Germany with his parents, received his doctorate in Cologne. Türeci, who was born in Germany, completed her doctorate in Homburg, Saarland.

READ ALSO: Here's how many people in Germany have a migrant background

The biotech company is just one example of a successful German business founded by people with a migration background. According to the KfW Bank study, these firms play an important role for the German economy.

“Startups are important for the power of renewal and thus for the future viability of an economy,” said Fritzi Köhler-Geib, Chief Economist of the state-owned development bank KfW.

“Germany has therefore been benefiting for many years from the greater willingness of migrants to set up their own businesses.” This was evident in 2019, she added.

Last year there were a recorded 605,000 business startups in Germany – and in about 160,000 cases the founders had a migration background.

The share rose significantly by five percentage points to 26 percent compared to 2018, the evaluation by the KfW Start-up Monitor shows. According to Köhler-Geib, the spirit of innovation and the growth of migrants holds great opportunities.

READ ALSO: Four things to know about the German firm leading the Covid-19 vaccine race

According to the study, migrants or people from a migration background are also more likely to become self-employed because they can face worse chances on the labour market than those without migrant roots. That means they have a greater willingness to take risks, said the study.

Startups are young commercial enterprises founded no more than five years ago whose founders are full-time entrepreneurs, have a team of founders or employees and are innovation or growth-driven.

Migrants are counted as people who do not have German citizenship or have not had it from birth. Meanwhile, someone is considered to have a migrant background if they or at least one parent was born without German citizenship.

According to KfW, due to the pandemic, many startup plans have been put on hold. “However, the crisis can also act as a catalyst for innovation,” said Köhler-Geib. “Founders who meet the new demands with innovative business ideas can be the big winners of tomorrow.”

Vocabulary

Founded or established – gegründet

Immigrants – (die) Einwanderer

Migrant background – (der) Migrationshintergrund

Higher risk tolerance/higher willingness to take risks – (die) höhere Risikobereitschaft

We're aiming to help our readers improve their German by translating vocabulary from some of our news stories. Did you find this article useful? Let us know.

Member comments

  1. Does is really matter from which background the people come from. DR.MLK would be turning in his grave.
    Give up on trying to divide us.

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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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