Market Entry in Germany

>> Choosing the right Region to expand in Germany


Berlin is one of the most important start-up hubs in the world. The city with a population of 3.5 million.  has a diverse, international character with a worldwide reputation for innovation in the online sector.

The cost of living is very reasonable compared to other international cities such as London and New York. The city has low prices for most daily things such as public transport, food and also entertainment activities. A great pool of talent, a thriving start-up scene and a very rich culture makes it a very interesting place to visit and discover opportunities or establish a business.

Berlin is the heart of Europe and is attracting more and more industries, the affordable, cultural offerings and the international environment makes it also easy to attract international talent to foreign companies.

Berlin is considered the centre of the European startup scene, known colloquially as ‘Silicon Allee.’ More new businesses are started in Berlin than in any other Bundesland (State) with 128 new businesses per 10,000 people (the German average is 84). According to McKinsey & Co., by 2020 Berlin startups could be responsible for creating more than 100,000 jobs.

Frankfurt am Main

Banking and Financial Services. With major banks like Commerzbank, Deutsche Bank, ING DiBA these global financial institutions offer companies incredible yet relatively untapped customer base. There are various kinds of opportunities for partnerships, ranging from strategic investments to more basic customer client relationships. Many investment companies, including angel investors, are based in Frankfurt. Due to its central location and the Frankfurt airport, many logistic and shipping companies are based in the so-called Rhein-Main area which presents many interesting opportunities especially for companies entering the market.

Wolfsburg, Stuttgart and Munich

Automotive manufacturers.

Many corporations, including BMW, Siemens and the large insurance firm Allianz, are headquartered in Munich. These firms foster startups with investment and offer a wide range of interesting programmes.

Ruhr area

One of Germany’s traditionally strongest (and at the same time oldest) economic regions is in the west, between Duisburg and Dortmund. 27 of the country’s 100 largest companies are located there. In recent years, however, the area that had a main focus on natural resources and heavy industry, has seen a substantial rise in unemployment due to many coal mines and metal manufacturing plants closing down.

Bayern and Baden-Württemberg – Southern Germany

The states with the lowest number of unemployed people (2010: 4.5%, 4.9%), on the other hand, is based on high-value products. Important sectors are automobiles, electronics, aerospace and biomedicine, among others. Baden-Württemberg is an industrial centre especially for automobile and machine building industry and the home of brands like Mercedes-Benz (Daimler), Porsche and Bosch.

Latest version updated 6th December 2017

Country Breakdown






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