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Berlin: City of Start-ups
A recent study by Gruenden, a leading Germany advisory agency for new businesses
discovered that a start-up is founded every 20 minutes in Berlin. Historically speaking, Berlin is a city with its roots in the manufacturing and industrial sectors. For 50 years or so however, that’s not been the case. When the Berlin Wall fell in 1989, people from all over the world poured into Berlin - some to live and some to visit. That tourism industry was for many years one of Berlin’s biggest sources of income. But in a city where the only constant is change, it’s only natural that Berlin has once again reinvented itself.
Today, Berlin attracts those seeking to make new businesses and those wanting to expand. Other than London, Berlin is arguably the biggest tech city in Europe, with its sights fixed on becoming the world’s biggest. So, what is accommodating this enormous growth in the tech industry in Berlin?
It Has Support from Powerful People
The growth of the tech industry is good for everyone in Berlin, and as a result, the government has grants open to firms looking to start up their business idea, in addition to generous tax breaks. All that can be done to aid the growth of the sector is certainly achieved.
Firms Have an Abundance of Fitting Candidates
If you are between the ages of 19 and 30, you probably regard Berlin to be one of the coolest cities in the world. When people think of contemporary Berlin, they think of its obscenely wild party culture, its diversity and its rich culture. This reputation has resulted in thousands of young and educated people from all over the world moving to the city, leaving new firms in no short supply of an enthusiastic and appropriate workforce.
It’s Affordable
Munich has a thriving business culture, with some of the world’s biggest companies running their operations from Germany’s 3rd biggest city, companies like IBM, Microsoft, and Yahoo, to name a few. While you won’t find as many international companies with HQs in Berlin, you will find a considerable amount of start-ups, such as SoundCloud, EyeEm, and SumUp. This is partly because the city costs a fraction of what Munich does, in just about every field.
From general living costs through to office space rental prices. Companies can set up cheap office space and find affordable hosting from German companies such as 1&1 at the drop of a hat. The cheap living costs is another factor which keeps young people coming to Berlin. With no recession on the horizon, Berlin is a good place to be right now for entrepreneurs and graduates alike.