Berlin No Longer Number 1

The German start-up scene is changing: more and more start-ups are being founded outside the hotspot Berlin. However, the search for skilled workers is presenting more and more start-ups with problems.

According to a recent survey, North Rhine-Westphalia has displaced Berlin from the top position as a location for start-ups in Germany. According to the Startup Monitor published by the Federal Association of German Startups and the management consultancy KPMG, around 19 percent of all such young companies (previous year: 14.4 percent) are now located in the most populous federal state. According to the survey, Berlin, the leader until now, only accounts for 15.8 percent of the total.

Baden-Württemberg (12.6 percent) and Bavaria (12.3 percent) follow in the next places of the nationwide ranking. The new federal states - excluding Berlin - together have a share of 11.2 percent. According to the study, the startups are concentrated in the major cities. In addition to Berlin,  above all, the Rhine-Ruhr metropolitan region, Hamburg, the Stuttgart/Karlsruhe metropolitan area, and Munich are attracting start-ups.

However, the growing shortage of skilled workers in Germany is now proving to be an increasing challenge for start-ups. Three out of four start-ups reported having difficulties in finding IT specialists. According to the study, the young companies could not offer the same wages and security as established companies.

The start-up scene is still dominated by men. According to the survey, the proportion of female founders is 15 percent. The average age of the founders is 35 years. Most of them have studied economics, mathematics, engineering, natural sciences, or technology. According to their own figures, the founders work an average of 56 hours a week. Nevertheless, around two thirds of them are satisfied with their work-life balance.

The Startup Monitor analyses the data of 1550 startups throughout Germany with 3763 founders and 17 647 employees. The survey is not representative, but is considered the most comprehensive survey of the start-up scene in Germany.