Archive for March, 2011

March 11, 2011

Only 0,027 percent of the GDP for Startups

In 2009 only 0,027 percent of Germans gross domestic product was dedicated to startups (meaning especially venture capital). In Austria the situation is even worse. The European average was about 0,03 percent.
>> display quoted article (Original article in German.)

Let’s compare: In the US the percentage was 5 times higher.
0,13 percent of the 2009 GDP was dedicated to startups, according to a Deutsche Bank Research.
>> display quoted article (Research Study, pdf)

Is the situation getting better? Not at all.
“In 2008 Venture capital investment amounted to 0.054 per cent of Europe’s GDP […]”
>> display quoted article

Would it be useful to support startups? Oh yes!
“[…] established companies are job destroyers. From 1977 to 2005, they erased 1 million net jobs per year. At the same time, new businesses in their first year added an average of 3 million (net) jobs annually; they were the job creators. Young companies also create jobs fastest: On average, one-year-old enterprises create nearly 1 million jobs, while 10-year-olds generate 300,000 per year, according to the report. Startups drive job growth, and they should be the focus of job-creation policies—not the larger, established employers.”
>> display quoted article

What can we do against it? Well, funny or not, I found a quite interesting to do list on an American Website. Yes, although the Americans are much better in supporting startups than European countries are, they seriously think about doing it even better:
>> display quoted article

Startups out there: We know it is hard, but don’t worry. Together we can change everything. Wooonga Venture is coming …