Attended a conference in Berlin on entrepreneurship, especially in design and social context. Hosted at the Betahus and organised by Stockholm University Innovation, the conference explored how Berlin is addressing global challenges on an entrepreneurial level. Betahaus is an exciting initiative. But in no way does it create innovation. Rather, it just offers a means to help people discover and nurture their passion.
Despite the good intentions, the conference itself was not of key interest. Rather, it was the experience of discovering the entrepreneurial spirit of Berlin, and the reasons behind it, that intrigued me the most. After some thought, I tried to enlist reasons why Berlin attracts entrepreneurs –
- Cultural melting pot of Europe, primarily because of central location and rich history. Close proximity to other major creative hubs in Europe.
- A large population of people seeking out new ventures and wanting to begin from scratch. More likely for an entrepreneur to meet likeminded people to collaborate with.
- Cost of living is relatively low as compared to most metropolitan cities in Europe.
- Relatively easy to find housing within city limits.
- German immigration rules make a provision to allow foreign fresh graduates from German universities to stay back for 6-9 months in Germany to find work. Hence, there is a large pool of fresh minds available. Downside is, there is a high unemployment rate as compared to other cities in Germany. But the more the unemployment amongst this particular group of people, the more the likelihood of them turning into entrepreneurs.
- Vienna coffee culture is prevalent everywhere – cafes and pubs remain open for long hours. Most have wi-fi access and let you work on their premises for as long as you want (at least till midnight). Saves entrepreneurs the cost of renting a office space. Extremely valued.
- Germany has progressive taxation (0-45%), meaning young entrepreneurs can survive on modest earnings to begin with.
- Berlin municipality has special tax provisions for artists, designers, and in general, people engaged in creative services.
- One can get by in Berlin without having to know German. Situations can be a bit tricky when registering new companies, since German is the official language, and it helps if you have a German speaking partner.
- Germany is a massive & a strong economy – one can create a market with relative ease.
- Corporate culture in Germany is a bit uptight as compared to, lets say Sweden. Entrepreneurs wishing to work with medium-large corporations have to face the bureaucratic hierarchies of such. In short, creative freedom is likely to be constrained. Or to look at in another way, you have to at the top of your game all the time, to make a name and grow – its the survival of only the fittest.
- Berlin has provided for the creation of ‘art & design’ districts within the city boundaries.
- Berlin is a buzzing metropolis – there is always something happening, day and night, 24/7, all year round. An appealing quality to attract young people.
- Berlin has a low crime rate.
- Despite all of the above, creative people still have to struggle to make a mark – since there are so many who offer the same services. It is one reason why you see credible body of work coming out the city’s entrepreneurs. Necessity is the mother of all inventions.