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In Germany, life for expats - people who live and work far from home - is apparently anything but easy. A recently published survey by "Expat Insider" reveals that starting a new life in Germany comes with a variety of challenges. From bureaucratic hurdles to a lack of digitalization and difficulties with social integration - the list of obstacles is long.
The international expat community took to the "Expat Insider" report to offer insight into the lives of expats in various countries. Germany ranked 49th out of a total of 53 countries. The situation seems to be even more difficult only in some other countries. The general quality of life in Germany still reaches 18th place in the ranking. Factors such as the healthcare system, travel and commuting infrastructure and leisure opportunities are included here. Germany also does relatively well at work, with 15th place for earnings and career opportunities, work culture, and job security and wages.
However, a different picture is revealed in the social sphere, with Germany landing in 50th place, indicating a lack of friendliness, difficulties with social networking and an inadequate welcoming culture.
Expats complain in particular about the lack of digitization in Germany. The "Expat Essentials Index," which evaluates the infrastructure designed to help foreigners organize a life abroad, places Germany in last place. A lack of digitization, the tight housing market and language barriers pose significant challenges. Germans' preference for cash meets with a lack of understanding.
Expats working in Germany are often in IT, manufacturing and engineering or the financial sector. They come predominantly from the U.S., the U.K. and India. So the hurdles to a happy life in Germany appear to be high for expats, while other countries are rated as much more hospitable and livable.
The "Expat Insider" survey thus makes it clear that while Germany appears to be an attractive work destination for expats, it faces a number of difficulties in the areas of social integration and infrastructure. Improving these aspects could benefit not only expats, but also the country itself by increasing its appeal to international professionals.
From the fight against uncertainty to a possible turnaround: More startups in the first half of 2023
The past year has been a touchstone for many young companies in Germany, marked by wars, economic instability and rising interest rates. But now there are signs of a possible turnaround as startup formation picks up steam in the first half of 2023
According to a study by the German Startups Association in collaboration with industry service Startupdetector, 16 percent more companies found their way into the business world compared to the previous six months, representing nearly 1,300 startups.
The once-booming German startup scene experienced a peak period in 2021, with record levels of funding from investors. The COVID-19 pandemic acted as a catalyst for digitization in areas such as finance, food delivery and online shopping. However, the environment changed with the Russian war on Ukraine and rising interest rates and uncertainty in the economy. Investors pulled back, and many startups were forced to cut jobs.
The number of start-ups also showed a downward trend. After the record year of 2021 with almost 3,200 startups, this number dropped to 2619 in 2022. Nevertheless, the first half of 2023 shows a positive development, even if the total number of startups remains comparatively low at just under 1,300.
The tourism, mobility, food and software sectors in particular saw an increase in startups compared to previous periods. In contrast, there was less startup activity in the blockchain and cryptocurrencies sectors.
The cities of Berlin and Hamburg stood out in particular. Berlin saw a 40 percent increase in startups (262) after a decline in the previous year. This is particularly noteworthy given that Berlin had to contend with difficult financing conditions last year. Hamburg also recorded significant growth with 90 new startups. In Munich, on the other hand, the startup rate rose only slightly by two percent to 95 companies.
In terms of population, however, Munich remains the leader: in the twelve months from July 2022 to June 2023, 12.6 new start-ups were counted per 100,000 inhabitants in arithmetical terms. This is slightly higher than in Berlin with 12.3 start-ups per 100,000 inhabitants.
The optimistic signs of rising startup activity give hope that German startups can recover from the challenges of the past year and experience a new upswing.
Selecting a product on Amazon can be a challenge, especially given the often thousands of reviews a product can receive. To make this task easier, Amazon is currently testing a new feature that uses Artificial Intelligence (AI) to automatically summarize reviews and highlight the most important information.
The basic idea behind this innovation is to provide customers with better guidance amid the plethora of opinions and reviews. In recent weeks, the company has begun testing a new feature. This AI-powered function analyzes all existing reviews of a product and searches for the central statements. It then automatically generates a compact summary from them, showing the product's pros and cons.
Currently, this function is available to selected users of the Amazon mobile app. However, it is only available in English for the time being and only affects certain product categories such as televisions, headphones and smartphones. Despite the still limited application, it is already apparent that the generated summaries have some weaknesses.
It is important to note that this feature is still in the testing phase. The automated summaries are so far occasionally contradictory and repetitive. For example, it can happen that the battery life of a laptop is referred to several times, while at the same time the performance is mentioned as a negative aspect.
The previous summaries tend to emphasize positive aspects more than negative ones. However, some arguments are too generalized to make sense in the context of the product. For example, the "ease of use" emphasized by AI for a smartphone could refer to both the intuitive user interface and the setup of the device.
Amazon describes the AI used as merely a "generative system." Nevertheless, the feature has a filter function that allows users to select certain parameters that are particularly important to them. In the case of sports equipment, for example, these could be properties such as durability, comfort and functionality.
Although AI-based summarization of reviews still has room for improvement, it could make the shopping process on Amazon more efficient in the future. By providing compact information, customers could make informed decisions faster and improve their shopping experience.
The trade registrations in Berlin have recorded a remarkable increase in the first half of 2023. According to a recent press release from the Berlin-Brandenburg Statistics Office, a total of 21,551 trades were registered with Berlin's business offices, a 3.2 percent increase over the same period last year
Varied picture of trade activity
The report shows a dynamic range of commercial activities in the German capital. The economic section "Trade; maintenance and repair of motor vehicles" recorded the most activity with 4,121 registrations, followed by the construction sector with 3,390 registrations. Also significant numbers were recorded in the "provision of professional, scientific and technical services" section, with 2,835 business registrations.
At the same time, however, the number of business deregistrations also increased by 3.3 percent year-on-year to 16,546, with a number of 3,224 deregistrations recorded in the "Trade; maintenance and repair of motor vehicles" sector and 2,857 in the construction sector.
New establishments and complete tasks
An impressive 91.9 percent of business registrations were new businesses, indicating a continued interest in entrepreneurial activity. A total of 19,795 businesses were newly established. In contrast, 91.0 percent of deregistered establishments ceased operations entirely, representing 15,049 establishments.
Gender and nationality of traders
An interesting picture emerges with regard to the gender and nationality of traders. One third of the total of 16,279 sole proprietorships were registered by female entrepreneurs, an increase of 8.7 percent compared to the previous year. Among the deregistered sole proprietorships, women accounted for 30.6 percent.
It is also striking that a considerable proportion of business registrations and deregistrations came from foreign traders. 43.0 percent of the registrations and 39.3 percent of the deregistrations of sole traders were accounted for by this group.
Multiple economic sections
The business registrations are distributed among various economic sections. Construction is strongly represented with 3,390 registrations, followed by "Trade; maintenance and repair of motor vehicles" with 4,121 registrations. Other significant economic sections include "Professional, scientific and technical services" and "Other economic services."
Conclusion
The business registrations in Berlin in the first half of 2023 paint a positive picture of economic activity and entrepreneurial commitment. The increase in new businesses, particularly by women and foreign traders, reflects the diversity and dynamism of Berlin's economy. This trend could point to a positive economic future for the city, although a continued supportive infrastructure for startups and entrepreneurship remains important.
The business climate index for the self-employed has deteriorated again in July 2023, and there are signs that there is an urgent need for action on the part of policymakers. The ifo Institute released the latest figures, which indicate that the business climate among the self-employed has continued to decline. Both the current business situation and future expectations were assessed more negatively by respondents. The index for solo and micro entrepreneurs fell by 3.8 to -16.4, while for the economy as a whole it fell by 2.8 to -9.1.
The current trend is reminiscent of the lowest points in recent years. Compared to the low point in October 2022, the assessment of the business situation for solo and micro entrepreneurs has hardly improved. This could be an alarm signal for policymakers, who now need to see themselves in an active role.
Andreas Lutz, chairman of the board of the Association of Founders and Self-Employed People Germany (VGSD), stressed the urgency of positive measures to revive the business climate. The idea of a government commissioner for solo self-employed was discussed as a way to promote the interests of this group and take immediate relief measures.
A positive turnaround is evident in the services sector, which has performed relatively positively in the index since February 2022. However, this sector has also lost ground in recent months. Index scores for the services sector have fallen sharply, and pessimism about future business prospects has increased. This pattern is also evident in various industries within the services sector.
The VGSD, whose members are mostly active in the service sector, emphasizes the diversity of industries in this sector. The different developments in the individual industries highlight the need to pay closer attention to the specific trends and challenges in each sector.