1. Strong: a dynamic economy
Significant spending power, the spirit of innovation, its location at the heart of a dense transport network in the centre of Europe and highly skilled workers – all of these are benefits offered by Germany as a business location.
Science and research with a practical orientation and well-trained qualified professionals have generated an excellent environment for innovation – and as a result, Germany is one of the European leaders with 57,214 patent applications in 2022. Thanks to a per capita spending power of €27,848 in 2024 Germany ranks among the countries with the highest purchasing power in Europe – new ideas easily find a market here.
Many of these are generated by what is known as the Mittelstand. The Mittelstand is formed by the scores of small and medium-sized companies which are characteristic of Germany’s economy.
The German infrastructure will also make it easy for you to set up your own business. Roughly 830,000 km of roads, 38,400 km of railways and a modern telecommunications network will take you, your ideas and your products to your destination.
2. Stable: a good home for your ideas
As an entrepreneur in Germany, you can expect a stable political and economic environment for your ideas, which are protected by the law.
Inventions, company logos and concepts – in Germany, your intellectual property is protected. The Copyright Act, Patent Law and Trademark Law are all designed to safeguard what is probably your most valuable asset.
Economic policies also focus on protecting excellent ideas: Competition Law, for example, ensures that your competitors cannot make false claims about your products in order to attract customers for themselves.
Germany not only defends the freedom of competition, but also the freedom of its citizens. The basis for this is the liberal democratic basic order, which determines that the people elect their representatives, while the separation of powers prevents the abuse of power.
These are the reasons why the German economy is as stable as it is: between 2016 and 2022, the number of employees subject to social insurance contributions rose by 3 million to around 34.3 million.