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Germany's Economic Ministers Emphasize Support for Start-ups and Business Successions
At a two-day conference in Stuttgart, the Economic Ministers' Conference, a gathering of economic ministers from the 16 federal states, discussed measures to make Germany's capital market more attractive to foreign investors and promote entrepreneurial spirit.
The conference, chaired by Nicole Hoffmeister-Kraut, the Minister of Economics from Baden-Württemberg, highlighted the need for more entrepreneurial risks and suggested initiatives to facilitate start-ups and business successions. One such initiative is the creation of "regional hubs" to mediate potential successors for companies, particularly for specialists and executives at risk of job loss.
Hoffmeister-Kraut also emphasized the importance of private venture capital in overcoming the lack thereof in Germany, which she identified as one of the biggest obstacles to company foundations. She believes that people who are willing to take risks, invest, and try new things are crucial for the success of start-ups and business successions.
The attendees also discussed the potential of company takeovers as an opportunity for dismissed executives. The conference concluded with a unanimous decision that cybersecurity must be increased, with the federal government ensuring support measures for companies in the future and strengthening the cybersecurity industry.
In addition, the economic ministers saw a need for action in improving the framework conditions for umbrella funds, allowing small investors to invest in small and medium-sized enterprises, including start-ups.
The federal government is urged to identify and adjust rules that go beyond European minimum standards to make it easier for companies to do business, promote growth and competitiveness, reduce bureaucracy, and tackle the process announced by the European Commission to reduce reporting and documentation requirements by up to 35 percent.
The economic ministers aim to enhance conditions for company foundations, particularly start-ups and business successions. Key actions and initiatives include federal funding and support for regional startup ecosystems like boOst, large-scale private sector-led partnerships such as the "Made for Germany" initiative, government measures like the €500 billion investment fund, and plans to reform social insurance and reduce bureaucratic hurdles.
Together, these represent a comprehensive approach by federal, state, and economic ministries to strengthen Germany’s start-up ecosystem by improving funding, facilitating partnerships, and reforming the framework conditions critical for new ventures to thrive.
Nicole Hoffmeister-Kraut is a member of the CDU political party.
[1] Boost Startup Ecosystem: https://www.boost-startup.de/ [2] Made for Germany: https://www.made-for-germany.de/ [3] Boost Startup Ecosystem Funding: https://www.boost-startup.de/news/booster-programm-fuer-startups-in-sachsen-und-thueringen-mit-10-millionen-euro-federal-funding [4] Made for Germany Initiative: https://www.made-for-germany.de/de/initiative/ [5] Boost Startup Ecosystem and Umbrella Funds: https://www.boost-startup.de/news/booster-programm-fuer-startups-in-sachsen-und-thueringen-mit-10-million-euro-federal-funding
- The Economic Ministers' Conference in Stuttgart emphasized the need for more venture capital investment to support start-ups and business successions, recognizing it as crucial for overcoming the lack of such capital in Germany.
- A unanimous decision was made to reform social insurance and reduce bureaucratic hurdles, with the aim of enhancing conditions for company foundations, particularly for start-ups and business successions.
- The economic ministers have identified improving the framework conditions for umbrella funds as a necessity, allowing small investors to invest in small and medium-sized businesses, including start-ups.
- The conference also discussed the potential for company takeovers as an opportunity for dismissed executives, as part of measures to promote entrepreneurship and support start-ups and business successions.
- The Ministry of Economics and the federal government are working on a comprehensive approach, including federal funding, support for regional startup ecosystems like Boost, large-scale private sector partnerships such as the Made for Germany initiative, and plans to reform policy and legislation related to small-business financing and real-estate investments.
