Introduction to Business in Germany
If you are planning to start up your own business, Germany would be among ideal options to consider. As a matter of fact, doing business in Germany may be quite promising. According to researches, Germany is recognized as one of the most prominent European countries, especially in the field of foreign trade development and marketing industry.
If you own a company in Germany, you will have a great chance to easily and quickly expand your relevant business contacts in Europe. The most in-demand business fields in Germany are catering, hospitality, IT, and healthcare.
Setting up your business in Germany is not subject to any restrictions. This is one of the reasons why many investors and businessmen choose Germany as a place of business. In line with this, the government of Germany has enticed their foreign investments into the country’s economy and this is also one of the reasons why there is no distinction between foreigners and German citizens, particularly when it comes to setting up a company. Germany will offer you a wide variety of business advantages. Thus, it is possible to trade and manufacture products under the protection of German trademarks.
Most German products are associated with modern technology. This is also one of the reasons why Germany is considered to be the most preferred business location worldwide. Moreover, if you own a business in Germany, you may obtain a residence permit and a visa as well as German citizenship later on. This kind of privileges will also apply to your family. Below we provide some insights into doing business in Germany that you should consider.
- Germany is the largest national economy in Europe. The country’s GDP share in the Eurozone amounts to 22 percent, with access to over 454 million clients. The productivity of Germany has risen by 30 percent within about 5 years.
- Germany is also recognized as the world’s second largest exporter, and the label “Made in Germany” is highly praised all over the Globe.
- Apart from being the largest exporter, Germany is located in the heart of Europe. It also provides instant access to established markets in Western Europe as well as to emerging markets in Eastern and Central Europe.
- Germany has highly sophisticated railways, motorways, and infrastructure. Its superb telecommunications network ensures that IT services are properly provided to clients.
- According to studies, Germany is considered to be the most innovative country in Europe, as 20 percent of European patents are held by Germans.
- Professional research and development, universities and training in Germany are highly ranked internationally.
- In addition, Germany is the most stable and accessible social market in Europe. The German finance and capital markets are quoted repeatedly by all sizes of businesses and constitute the country’s distinct advantage.
- In the modern economy, Germany is recognized as an elite dynamic player with high tech clusters all over the world.
- Germany has an excellent track record with almost 22,000 foreign investors and companies. It also employs over 2.1 million people generating trillions of Euros.
IIf you really want to start a successful business in Germany, you should be well aware of its key pillars:
Germans have a reputation of people who are uneasy about ambiguity, unquantifiable risks and uncertainty. Socially, most Germans lean towards conformism and conservatism. If you are planning to start your own business in Germany, you will probably notice that people attend to each detail, especially when it comes to careful planning, consensus, consultation, and consideration. Statistics and facts are of paramount importance, and organizing means averting risk by negating uncertainty.
- Risk Aversion
Fear and conformity makes most Germans feel apprehensive about possible risks. It is true that security is ensured through risk analysis. Risk aversion is attained through careful scrutiny and deliberation of factual evidence, which is also known as gut feeling. Therefore, written documents are considered as the safest and most objective medium intended for analysis. The so-called painstaking review of information and details ensure that all the relevant information has been taken into account.
According to studies, most Germans value their own privacy. This is also one of the reasons why there is private and public life. Germans normally put their business in a protective shell. You can encounter various communication styles in Germany. However, business communication should be direct, clear, and to the point.
When doing business in Germany, you should remember that punctuality is an integral part of German culture. Being late is bad etiquette and shows disrespect for your partners and business investors. As a matter of fact, most business people are often under stress and pressure. Therefore, punctuality is of crucial importance for their daily business routine.
Business in Germany is the top-notch option you should take into account to ensure the best possible results over a short period. By considering the salient factors and good etiquette in starting your own business in Germany, you will get one step closer to the peak of your success in business.