This website is using cookies to ensure you get the best experience possible on our website.
More info: Privacy & Cookies, Imprint
The two variants "selbstständige" and "selbständige" are different spellings of the same German term for a person who works independently or runs his own business. Both spellings are correct, and this is simply a spelling issue.
"Selbstständige" is the spelling according to the old German spelling system, while "selbständige" was proposed after the 1996 reform of German spelling. The reform has meant that some words that were previously written separately can now be written together. This also affects the word "selbstständig" or "independent."
Both spellings are valid, but the overwhelming preference and usage tends to be for the new spelling "self-reliant." It is important to note, however, that consistent usage within a text is recommended.
A look at the financial situation of founders in Germany
The German government has ambitious plans that could shake the foundations of the business landscape in Germany. A centerpiece of this reform is the planned introduction of mandatory old-age provision for founders, who have so far been outside the traditional old-age provision systems for specific occupational groups. The aim is to ensure that the self-employed can also build up a solid old-age provision. This directive could be implemented as soon as profit income exceeds the marginal earnings threshold for dependent employment after a waiting period of two years.
Background: opportunities and challenges for the self-employed
This reform is a response to the growing importance of self-employment and entrepreneurship in today's workforce. The self-employed have often been excluded from traditional social security systems, leading to uncertainty about financial security in retirement. The proposed mandatory retirement plan is intended to close this gap and ensure that the self-employed can also benefit from adequate retirement provisions.
Insights from research: IfM Bonn provides insights
A recent analysis by the Institut für Mittelstandsforschung Bonn (IfM Bonn) sheds light on the potential impact of the planned mandatory retirement provision. The analysis excludes individuals who are already insured elsewhere or who operate low-yield energy production facilities. Instead, the focus is on the income development of young start-up cohorts and established self-employed workers.
Data and methodology: a closer look at the numbers
The analysis draws on the Taxpayer Panel, an income tax data source provided by the Research Data Center of the Federal and State Statistical Offices. This dataset covers the period from 2001 to 2018 and allows for a detailed examination of the income situation of the self-employed.
Income distribution and trends: who are those affected?
The study focuses on the income distribution of founders from different cohorts in 2018. Interestingly, it shows that many self-employed people still report negative or low incomes years after their start-up. This suggests that many self-employed people are running their business part-time or part-time.
Outlook: Challenges and opportunities for the future
While the introduction of a mandatory retirement provision for founders is undoubtedly an important measure to secure the financial future of this group, the analysis of income trends makes it clear that many self-employed people may continue to face financial challenges. The federal government faces the task of taking advantage of these findings and, if necessary, adjusting the draft legislation to better address the needs of the self-employed.
The years 2012 to 2016 mark a crucial phase for the startup scene in Germany:
Founding year 2012:
Over 46,000 people ventured into self-employment.
About 24,700 of them recorded negative profit income in their first year.
About 31,900 people earned incomes between €0 and €5,400.
Founding year 2013:
More than 39,700 people ventured into self-employment in 2013.
Over 23,400 of them struggled with negative profit income in their first year.
About 29,000 earned incomes between €0 and €5,400.
Founding year 2014:
Over 38,000 people bravely founded businesses in 2014.
About 23,500 of them struggled with negative profit income in their first year.
About 25,800 earned incomes between €0 and €5,400.
Founding year 2015:
Over 38,800 people ventured into self-employment in 2015.
More than 32,500 of them recorded negative profit income in their first year.
Approximately 30,900 earned incomes between €0 and €5,400.
Founding year 2016:
Over 40,500 people courageously founded a company in 2016.
About 27,700 of them struggled with negative profit income in their first year.
About 38,700 earned incomes between €0 and €5,400.
On average, self-employed individuals with incomes above €5,730 earned a whopping €64,448.
These figures shed light on the financial reality of young businesses in their early years. Many struggle initially with low incomes below €5,400. Those that record higher profits are instrumental in raising the average. This highlights the many challenges young founders face as they build and develop their businesses.
In today's digital world, numerous opportunities open up for IT freelancers to work flexibly and independently. Freelancer platforms and IT intermediaries play an important role in this by bringing clients and freelancers together. However, there are some important aspects to consider in order to be successful as an IT freelancer. In this article, we take a look at the key points to consider.
1. Profile design and self-promotion:
Whether you use a freelance platform or get referred through an IT intermediary, having a strong profile is crucial. Make sure your profile highlights your skills, experience and previous projects. Remember that potential clients will use your profile to decide if you are right for their project.
2. Specialize and find niches:
There are a variety of specialties in the IT industry. The more specific you position your skills and knowledge, the more likely you are to find interesting projects. Focusing on a niche can also help you stand out from the competition and get better paying jobs.
3. Realistic prices and fair negotiations:
Determine a reasonable hourly rate or flat rate for your services. Be prepared to adjust your prices depending on the nature of the project and the scope of your work. In negotiations with clients or intermediaries, be confident in your values and skills, but also be flexible and fair.
4. Client reviews and references:
Collect positive reviews from satisfied clients on freelancer platforms. Good reviews are essential for gaining the trust of new potential clients. References from previous projects can also strengthen your credibility and increase your chances of success.
5. Transparent communication:
Clear and effective communication is essential to avoid misunderstandings and complete projects successfully. Clarify all important details at the beginning, such as the scope of the project, schedule, payment terms, and scope of delivery.
6. Contracts and legalities:
Make sure you have a clear and legally backed contract for each project. This should cover all agreements, disclaimers, and intellectual property rights. A solid contract protects both you and the client.
7. Time management and reliability:
As a freelancer, you have the responsibility to complete your projects on time. Therefore, good time management is essential. Show reliability and deliver on your commitments to build your reputation as a trustworthy professional.
8. Network and maintain contacts:
Maintain your professional network and make contacts in the IT industry. Even if you work through a platform or an intermediary, personal referrals and relationships can lead to new and lucrative projects.
9. Continuous education:
The IT industry is dynamic and subject to constant change. Keep your skills up to date by continuously educating yourself and following new technologies and trends. This will make you more attractive to clients and increase your marketability.
Conclusion:
As an IT freelancer, there are many aspects to consider in order to be successful. From self-promotion to transparent communication to a clear contract system, all of these factors will help advance your career. Take advantage of freelancer platforms and IT intermediaries to reach out to potential clients, but don't forget to actively work on your own network as well. With the right mix of expertise, self-promotion and customer focus, you can achieve long-term success as an IT freelancer.
In recent years, the rapid development of technologies has revolutionized the way businesses operate. One such technological innovation that has had a tremendous impact on business is Artificial Intelligence (AI). In this context, AI-based Software-as-a-Service (SaaS) companies have emerged as the driving force behind the implementation of AI solutions for business. But what exactly is an AI B2B SaaS company?
Defining an AI B2B SaaS company:
An AI B2B SaaS company is a software company that specializes in artificial intelligence and machine learning and sells its solutions to other companies through the software-as-a-service model. B2B here stands for "business-to-business," which means that these companies offer their products and services exclusively to other businesses and not to end users.
The role of AI in business:
AI is a branch of computer science that enables computers to simulate human-like intelligence. Through the use of algorithms and machine learning, AI can solve complex problems, recognize patterns, make predictions, and even learn on its own without needing to be explicitly programmed. In business, AI has the potential to transform several areas, including:
Automation: AI-based automation enables companies to automate time-consuming and repetitive tasks, resulting in increased efficiency and cost savings.
Personalization: By analyzing big data, AI can create personalized offers and recommendations for customers that improve the customer experience and increase customer satisfaction.
Prediction and analytics: With the help of AI, companies can predict future trends and behaviors, which helps them make informed business decisions and optimize their strategies.
Customer support: AI-powered chatbots and virtual assistants can improve customer support by answering customer queries and resolving issues in real time.
Security: AI can be used to detect and combat security threats by monitoring and analyzing suspicious activity in real time.
The meaning of SaaS:
Software-as-a-Service (SaaS) is a model in which software applications are delivered over the Internet. Instead of physically purchasing software and installing it on their own computers, companies can easily use SaaS applications through their web browsers. SaaS offers the advantage of scalability, flexibility and cost efficiency, as customers only have to pay for the services they actually use and are not responsible for the entire software development process.
How an AI B2B SaaS company works:
An AI B2B SaaS company develops and implements AI-powered solutions that are specifically tailored to meet the business needs of other companies. These solutions are then sold to customers through the SaaS model. Customers subscribe to the company's services, pay a regular fee, and can use the AI-powered features over the Internet.
Examples of applications of AI B2B SaaS companies:
Customer segmentation: an AI B2B SaaS company could develop an AI-powered platform that helps companies divide their customers into different segments to create targeted marketing strategies.
Demand forecasting: another example would be a platform that uses AI to predict demand for products, allowing companies to better plan their production and inventory levels.
Speech processing: an AI B2B SaaS company could offer a speech processing platform that helps companies analyze large volumes of text data and extract insights from customer feedback and social media.
Conclusion:
AI B2B SaaS companies play a critical role in how AI technologies are adopted and used in enterprises. They enable companies to reap the benefits of AI without investing heavily in in-house development resources. With a wide range of application areas and the potential to revolutionize business, AI B2B SaaS companies are expected to continue to play an important role in the digital transformation of enterprises worldwide.
The Berlin-Brandenburg Statistics Office today published the latest data on consumer insolvencies in the first quarter of 2023. A total of 1,043 insolvency proceedings were filed against "other debtors" (including shareholders, formerly self-employed persons, consumers and estates) from January to March. This marks an increase of 2.6 percent compared to the previous year.
Outstanding accounts receivable for the period amounted to EUR 77.5 million, a decrease of 4.6 percent compared to the same period last year when accounts receivable amounted to EUR 81.2 million.
987 of the requested procedures were opened. In 40 cases, however, the case was dismissed for lack of assets, since the debtor's assets were not sufficient to cover the costs of the proceedings. In addition, 16 procedures were completed with the acceptance of a confirmed debt settlement plan.
The proceedings were spread across different groups of debtors. In the first quarter of 2023, a total of 286 insolvent former self-employed were recorded, which corresponds to an increase of 38.2 percent compared to 2022. The liabilities of this group increased by 4.0 percent to EUR 43.9 million. In contrast, 733 procedures were opened against consumers affected by insolvency, which represents a decrease of 7.2 percent compared to the previous year. The liabilities of this group fell by 8.8 percent to EUR 32.0 million. The average debt per consumer was around EUR 43,600, slightly below the level of the previous year.
Looking at consumer bankruptcies by district, most cases were recorded in Marzahn-Hellersdorf and Lichtenberg, with 98 and 82 applications, respectively. The lowest number of over-indebted people was reported in Steglitz-Zehlendorf with 36 cases. With regard to the average debt per consumer procedure, Charlottenburg-Wilmersdorf and Tempelhof-Schoeneberg stood out with values of around EUR 87,100 and EUR 57,300, which clearly exceeded the state average.
An important comment on the interpretation of the data concerns the development of consumer insolvencies since mid-2020. This should be seen in connection with a change in the law that provides for a gradual reduction in residual debt discharge procedures from six to three years. This new regulation applies to consumer insolvency proceedings that have been filed since October 1, 2020. It enables those affected to start a new business faster after the insolvency proceedings have been completed. This could explain why many over-indebted private individuals temporarily withheld their bankruptcy applications in order to benefit from the new regulation. From the beginning of 2021, these "catch-up effects" led to a sharp increase in consumer bankruptcies, which has apparently leveled off in the meantime.
Overall, the figures for consumer bankruptcies in the first quarter of 2023 in Berlin illustrate the complex economic challenges faced by individuals and formerly self-employed in an ever-changing economic landscape.