Every day, a big number of companies try to enter the German market. It is one of the most attractive markets for almost all business branches.
Getting cultural background information can help understanding the feedback of the market and supporting business operations.
I will share with you some basic information and practical tips based on my long experience in consulting foreign companies with their market entry in Germany as well as my educational and private background in this field.
First of all, here some fun facts about German Economy:
· Germany has the strongest economy in Europe and fourth strongest economy in the world
· One of the lowest unemployment rates within EU
· Social market economy – private & public sectors work together, safety net of benefits paid by contributions, principle of solidarity – strong social security system
· Tax System among the highest in the world – tax burden on labor second highest OECD countries (after Belgium), many different federal / state / local government taxes, employer’s share of social insurance contributions approximately 21% of the gross wage
· Salaries – average monthly employment salary in Germany is little under 4000 Euro gross in 2020
· SMEs – number of smallest companies (under 9 employees) in Germany 2019 was 2,12 million
· Start-Ups – increase in start-up creation bigger than any other country in Europe; around 605.000 new businesses in 2019
· Decentralized country – businesses and clusters found all over the country, not only in biggest cities
In my next posts, I will refer to the main points of the business culture in Germany which should help you build up business relations and better understand your German partners.
Looking forward to your comments, questions, any input is very welcomed!
Sincerely,
Barbara
Interrelations - International Business Relations