The country beat 30 other European nations to the top position. The ranking was taken from a study by NimbleFins, who analysed data from the World Bank, World Economic Forum, UNESCO, OECD and tax consultancies.
Environments good for startups are considered to have highly educated populations, strong economies, healthy business environments and relatively low costs for conducting business.
Germany fits the bill across categories
NimbleFins showed that Germany ranked highly across most of their categories. It snagged the third spot in ‘Economic Health’, having a GDP of $3,846 billion.
It ranked second, behind Switzerland, for having a great business climate – a spot gained as it has relatively low corporate tax rates and provides good access to venture capital.
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With 83 percent of adults having an upper secondary degree, it also ranked highly for ‘Labour Force Quality’.
Germany also is ranked second in the group according to World Economic Forum metrics for market dominance, meaning that the marketplace is not restrained by few key players – something startups value highly.
Berlin centre of Germany’s startup life
Berlin economics senator Ramona Pop, of the Greens, stated that of the start-ups registered throughout Germany in 2019, a quarter were founded in Berlin. The capital is far ahead of the rest of Germany with 105 start-ups per 10,000 inhabitants.
Fourty-one percent of the companies had received subsidies, and nearly a quarter of those surveyed said they used venture capital to enter the market.
Andrew Haw, Head of Network at Silicon Allee, Berlin’s technology and events community, told The Local that “the German economy has been relatively stable for the last ten to fifteen years, and startups can feed off that in terms of partnerships with corporations and investment”.
“Its geographical position in Europe as well means its able to attract workers from neighbouring countries which have a high level of IT and technical expertise,” he added.