There are at least 10 good reasons why businesses should invest in Germany. For a start, Germany leads the world as an industrialised nation; it has a big market; it’s centrally located in Europe, even though it doesn’t have any of its own seaports.
- Big Market
Germany is home to 82 million people making it the most populated country in the European Union. It has a GDP of 2.2 trillion Euros, making it the biggest and strongest economy in Europe and the 3rd strongest globally.
- Germany is centrally located
Because of Germany’s great central location, it acts as a hub in Europe for both goods and services.
- Germany has an open market
Germany is always open to foreign investment, so currently, there are 22,000 foreign businesses have established themselves in Germany and today employ no less than 2.7 million people. There aren’t any industries left which are state-controlled. Germany is presently gaining interest from private equity businesses and hedge funds because the country’s company legislation is attractive and conditions are typically favourable for investors.
- Germany is already an International Location
Today, 7 million people from overseas reside in Germany. Several big urban areas with large foreign communities have set up their own churches, schools, stores and restaurants. For example, in the Düsseldorf region a large Japanese population live, Frankfurt is known for its Korean presence while Hamburg is home to a successful Chinese community. Around 70% of German white and blue collar workers speak at least one other language other than German.
- Trained personnel are common in Germany
What encourages businesses to set up in Germany is the availability of well qualified Germans. The demand for professional skills is high due to their high availability and education has been met by 383 higher education institutions. There is also a dual system for vocational education, which brings together school instruction and workplace training producing high standards and which meets the demand of the industry.
- Superior Innovation
Germany has for one million inhabitants and 277 international patents which is the highest of all other countries worldwide.
- Well Developed Infrastructure
Germany has a well-organised network of railways, roads and international airports so fast connections are possible. This guarantees fast connections. Frankfurt Airport is known for its role as an international air transport hub. The Port of Hamburg is known as the biggest container trans-shipment operation in Europe and its road and rail network are well-developed everywhere in the country.
- Legal Security is highly valued
Legal security is very important to businesses and Germany’s legal system has the type of legal security that overseas businesses and investors value.
- Strong SMEs are present
One of the German economy’s feature is the high presence of SME’s which are all privately owned. In fact 85% of businesses operating in Germany are SMEs. This encourages high levels of competition.
- “Made in Germany” is valued
Goods that say “Made in Germany” are considered to be of the highest quality in the world and have helped to keep Germany’s position as the key global exporter. The automotive, mechanical, electrical engineering and chemical industries are by far the strongest. There are certain future industries such as environmentally sustainable energy production and also nanotechnology that are starting to see businesses in these markets in Germany.
Every 2 years, the request for patents in these industries is doubling as they grow in importance. Basically, foreign investors gain too if they can put Made in Germany on their products. It’s one of the best reasons for setting up a business in Germany.