The secret's out! Berlin has become a real hotspot for technical innovation and the media. The startup scene in the capital is flourishing like nowhere else in Germany. For young entrepreneurs, Berlin offers the perfect mix of inspiration, creativity and networking opportunities. Furthermore, unlike other startup capitals, such as London or Tel Aviv, rents and the cost of living in Berlin remain comparably low. The German Startup Monitor 2015, published by the German Startups Association (BVDS) in cooperation with the Berlin School of Economics and Law and KPMG, shows just how popular the German capital is among start-up founders. The study surveyed more than 1,000 startups from all over Germany and found that Berlin still has the largest entrepreneurship ecosystem in Germany. Almost a third of all respondents are headquartered in the federal capital.
These young companies have proved to be real job generators, and, in Berlin in particular, appear to have found the perfect conditions for further growth. Last year, Berlin startups each employed an average of 25.2 employees. The figure for the previous year was 23.2. This places Berlin at the top, far ahead of any other city. By comparison, on average, German startups employed 15.2 employees last year, an average increase of around 0.7 employees compared with the previous year.
According to the study, this positive trend in employee numbers will continue this year: nearly all founders (93.9 percent) indicated that they are looking to hire new staff in 2016. Here, too, Berlin takes first place. On average, the capital's startups plan to create almost 12 new jobs per company by the end of the year. Hamburg and Munich are in second place and each plan to increase the number of jobs by around 10.
In view of this positive forecast, the mood among startups is positive: around 89 percent are either pleased with their current situation or consider it to be 'good'. As far as the market is concerned, things look positive going forward: 76 percent of those surveyed expect that the business climate will develop even more favorably over the next six months. The future prospects for Berlin as an investment location are correspondingly healthy and the capital's image as the location for entrepreneurs is unlikely to change any time soon.