The Importance of Entrepreneurship to Economic Development in Germany. Dr. Branislava Laux-Mali
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1 The Importance of Entrepreneurship to Economic Development in Germany Dr. Branislava Laux-Mali
2 Outline Short curriculum vitae of the speaker Overview of Germany What is entrepreneurship in general? Why entrepreneurship plays a vital role in the economy? Small and medium-sized enterprises Munich Area and the knowledge importance Summary Dr. Branislava Laux-Mali
3 Short curriculum vitae of the speaker Study of germanistics and political sciences with PhD (Dr. phil) at Ludwig-Maximilians-University in Munich Laux Global Consulting GmbH - trade relations between Germany and Serbia ( Lecturer for entrepreneurship and innovation at the University for Applied Sciences in Munich Member of the Serbian Chamber of Commerce business council for diaspora in Germany Coordinator of the cooperation between Belgrade and Munich-based University Dr. Branislava Laux-Mali Dr. Branislava Laux-Mali
4 Overview of Germany Federal Republic of Germany Population: 82,329,758 Ethical groups: Germans 91.5%, Turks 2.4%, other 6.1% Capital: Berlin 3,471,756 Germany comprises sixteen states Reunification: 3rd oct 1990 World`s fourth largest economy by nominal GDP estimtate 2011 $ 3,577 trillion, fifth largest by purchasing power parity 2011 estimate total $ 3,099 trillion Second largest exporter Third largest importer of goods Very high standard of living and social security National unemployment rate in March 2012: 7.2% 30 German-based companies are included in the DAX, the German stock market index Dr. Branislava Laux-Mali
5 What is entrepreneurship in general? 17th and early 18th centuries: Richard Cantillon and Adam Smith 20th century: Joseph Schumpeter: Theorie der wirtschaftlichen Entwicklung (1911) An entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation Entrepreneurship employs what Schumpeter called "the gale of creative destruction" to replace in whole or in part inferior innovations across markets and industries, simultaneously creating new products including new business models Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence. (R. Hisrich/M.Peters) Dr. Branislava Laux-Mali
6 Why entrepreneurship plays a vital role in the economy? Provides employment to huge mass of people Contributed towards research and development system Creates wealth for nation and for individuals as well Sky-scraping heights of apparent prospects It is a challenging opportunity for the people Entrepreneurship provides self sufficiency Dr. Branislava Laux-Mali
7 Small and medium-sized enterprises in Germany Small and medium-sized enterprises - the backbone of the Germans economy: represent 99.7% of all businesses produce 38% of taxable turnover account for nearly 49% of total net value added by companies provide roughly 60% of all jobs requiring social insurance contributions million enterprises with million social insurance employees and a turnover of 5,362 billion in sales recorded in Germany Dr. Branislava Laux-Mali
8 Small and medium-sized enterprises in Germany Share of small and medium-sized enterprises based on choosen characteristics (2007) enterprises employees revenue Gross fixed capital formation Gross value added Dr. Branislava Laux-Mali
9 Small and medium-sized enterprises in Germany In total SEM SEM- share Number of Companies million 3.67 million 99.7 % Revenue of the companies 4, billion 1, billion 39.1 % Self- employed persons 4.26 million Net value added 51.3 % 679,100 companies were founded in Germany in 2011 Dr. Branislava Laux-Mali
10 Praise for Germany as Europe`s best SMEs cut off The best cuts from Germany - One in five medium-sized enterprises in the EU comes from Germany in 2010 (SME Week, Brussels) Germany employes an average of three employees more than the EU average (7.3 versus 4.2) The recovery in 2010 came from SMEs. This clearly shows how important they are for growth and employment. The SME Week we want to highlight the crucial role of small and medium enterprises for European competitiveness. Europe needs new, creative and highly innovative entrepreneurs who are willing to take risks. This is the main way to overcome the crisis (Commission Vice A. Tajani) Dr. Branislava Laux-Mali
11 Priorities of Germany's SME policy Federal Ministry of Economics and Technology has launched a new SME initiavive called Building on SMEs: greater responsibility, greater freedom Seven prioritity areas are crucial for the commercial succsess of SMEs: - Innovation - Skilled workers - Business start-ups and business succession - Market opportunities abroad - Financing - Raw materials, energy, and materials efficiency - Bureaucracy reduction Dr. Branislava Laux-Mali
12 Federal funding through the KfW SME Bank KfW enrty fee for start-up to apply for public funding Entrepreneurial capital for SMEs to subordinate financing Corporate loans is aimed for the long-term financing of investment Employment Agency/Job Center offer out their own entry fees and grants for business start-ups out of unemployment Nation-wide centralized information center In-house database of over 2,000 funding and grant programs Dr. Branislava Laux-Mali
13 Small and medium-sized enterprises in Germany The more intense the colouring of one region, the higher is the intention to establish a start-up. The NUI-Indicator sets the number of business registrations of the citys in Germany in relation to the employable population at the 31st dec of the last year. New Entrepreneurial Iniciative 2009 à Start-ups especially in the south of Germany, in Bavaria. Dr. Branislava Laux-Mali
14 The Economic Region of Munich Motivation Innovation and Leadership-Skills Innovation culture Dr. Branislava Laux-Mali
15 Entrepreneurship knowledge based Entrepreneurship is neither a science nor an art. It is a practice. It has a knowledge base. Dr. Branislava Laux-Mali
16 Munich as a Centre of Knowledge Dr. Branislava Laux-Mali
17 Munich as a Centre of E ship Knowledge Unternehmer- tum ggmbh LMU EC GmbH SCE ggmbh Cetim ggmbh Dr. Branislava Laux-Mali
18 Munich as a Centre of E ship Knowledge At the end of the nineties the first center for entrepreneurship in Germany was establisched Today there are more than 60, the tendency is increasing Support for the establishment of centers for entrepreneurship in Germany is primarly understood as a public task Dr. Branislava Laux-Mali
19 Germany as a start-up country Entrepreneurship in Germany, especially in Bavaria attaches great importance not only in the teaching field but also in economic and political. As the picture shows is Germany today a start-up country. Dr. Branislava Laux-Mali
20 Falk F. Strascheg, founding partner of EXTOREL (venture capital organisation) One of the most experienced and successful venture capitalists in Europe In 1971, before founding TECHNOLOGIEHOLDING, Falk F. Strascheg had founded Laser Optonic in Munich Dr. Branislava Laux-Mali
21 What exactely is the SCE doing? Motivation & Qualification Start- Up Support SCE Impulses Network & Partners Dr. Branislava Laux-Mali
22 The Incubator: SCE Teams Pre-Incubation Incubation Exit Phase I Phase II MORE EXIST/ FLÜGGE Venture Capital around teams Eisbox sira munich Dr. Branislava Laux-Mali
23 Summary Promoting entrepreneurship and enhancing the entrepreneurial dynamic of each country should be an intergral element of any government`s commitment to boosting economy. Government policies and programs targeted significantly at the entrepreneurial sector. The higher the levels of entrepreneurship is in the nation the higher is its level of development. Lastly, one can wind up by saying that entrepreneurship strengthens the economic growth of a nation, as well as give power to society, speeds up modernization and transforms way of thinking of the common man. Dr. Branislava Laux-Mali
24 THANK YOU FOR YOUR ATTENTION
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