Company Gateway for Startups

Problem

 

The German economy signifies quality. The German economy signifies productivity. But sadly, nowadays, it does not signify innovation.

 

Statistics show that the number of companies founded in Germany decreased from 428.000 in 2012 to 378.000 in 2016, a total decrease of 12%. Looking back 10 years ago, there were 25% fewer companies founded in Germany in 2016 than in 2007.

 

(c) YES! Team BBS Wirtschaft 1 Ludwigshafen

 

There are several reasons behind this. A study by HHL Leipzig Graduate School of Management found that possible hurdles for entrepreneurs starting up a company include:

  • Lack of acceptance of failure (80%)
  • Criticism by society (60%)
  • Finding capital (50%)
  • Risk (45%)

 

Company Gateway - YES! Team BBS Wirtschaft 1 Ludwigshafen

(c) YES! Team BBS Wirtschaft 1 Ludwigshafen

 

To encourage business growth across the country and solve the lack of start up support for innovative new businesses, the YES! team of the BBSW1 – Ludwigshafen invented the idea of Company Gateway.

 

The Solution – Company Gateway

 

Company Gateway - YES! Team BBS Wirtschaft 1 Ludwigshafen

(c) YES! Team BBS Wirtschaft 1 Ludwigshafen

 

Our idea, Company Gateway, will grow the start up economy in Germany and support innovative new firms. Company Gateway will be a governmental organisation and it will:

  • Help entrepreneurs set up a company in one easy step
  • Support Start Ups in finding venture capital and insurances for their business
  • Provide business advice and support through a 24/7 online service centre
  • Run training courses, forums, workshops and networking events for employees
  • Host an annual innovation competition for businesses
  • Provide access to HR support for start ups
  • Create an online platform for entrepreneurs to present their business idea and find clients

 

The Advantages

 

  • Help entrepreneurs set up a company in one easy step by having a ‘one step’ method for setting up a company, start up founders will safe a lot of money and time – meaning they can be more innovative business owners than getting overloaded with paperwork. Currently, if you set up a Limited in Germany (e.g. GmbH) costs up to 2500€ can occur and  it takes on average 9 days. Company Gateway would combine the complicated steps to found a company and make it possible to found a company in less than a day and with costs below 100€.This simplification of the founding-process is necessary to make Germany a competitive Start-Up location and to keep innovative potential founders staying in Germany with their business.
  • Support Start Ups in finding venture capital and insurances for their business
  • In a recent HHL-Delphi-Study 42% of the experts said that finding capital is a serious hurdle for start ups. Company Gateway will support start ups to find venture capital, find other shareholders and get a loan from a bank. This will decrease risks aversion and as a result businesses will feel less nervous about their company failing. Our insurance advice service, which will help start ups to find necessary and important insurances for their business.
  • Provide business advice and support through a 24/7 online service centre
  • Run training courses, forums, workshops and networking events for employees
  • Host an annual innovation competition for businesses
  • Provide access to HR support for start ups
  • Create an online platform for entrepreneurs to present their business idea and find clients

 

Company Gateway will decrease risks aversion and due to that also the critic by the society if your company fails.

 

Company Gateway will reduce risks due to:

  • the wide spread area of events offered, Network events will make it easier for the company to find customers and build up connections, training courses will impart important knowledge for both founders and their employees
  • the offer of an HR Service, to ensure a good relationship at work and to maximise efficiency and productivity due to a well-functioning HR structure of the start up
  • simplifying the process of finding venture capital due to its service offers in this aspect
  • providing an online platform which makes it easier for start ups to find partners/customers/staff
  • the 24/7 accessible online service centre which will support start ups at any time

 

Company Gateway will support innovative businesses additionally due to an annual competition at which the most innovative start ups of the year can win funding for their business.

 

The company with the most sustainable production plan has also the possibility to win funding for improving their production plan further.

 

Company Gateway - YES! Team BBS Wirtschaft 1 Ludwigshafen

(c) YES! Team BBS Wirtschaft 1 Ludwigshafen

YES! 2017 Team BBS I Ludwigshafen
(c) ZBW / Kai Meinke
Logo BBS Wirtschaft 1 Ludwigshafen
(c) BBS Wirtschaft 1 Ludwigshafen

Pitch

Presentation & Discussion

YES! 2017 Topic

 

nationale_investitionsstrategien_shutterstock_533640046_Sergey_Nivens
(c) shutterstock.com / Sergey Nivens
Logo Zentrum für Europäische Wirtschaftsforschung (ZEW) Mannheim

 

Technological progress through innovation is probably the most important driving force of the productivity (and in turn welfare) growth of developed economies. An example of such technological progress is named Moore’s Law. Moore’s Law states that the computing power of new computer chips doubles about every two years. This exceptional technological performance has been observable for more than 50 years now and represents an impressive example of exponential growth (exactly 35% per year) of our technological opportunities. In the more recent past, however, this exponential growth could only be maintained through a massive increase in expenditures on research and development (R&D). The graph below illustrates the phenomenon: the largest semiconductors manufacturers (Intel, Samsung, Siemens, etc.) needed to increase their R&D expenditures by nearly 80% over the last 45 years to maintain Moore’s law.

 

In this project, the social chances and risks of different national innovation strategies are to be compared and discussed, in order to derive recommendations for future political action.

 

 

How can (and should) policy react to the decreasing returns to R&D? Should the trend towards more specialisation be actively encouraged – so that at least parts of the companies and regions will remain internationally competitive in the future and will be able to compete with the USA or China? Should research and development and the foundation of start-ups be particularly promoted in a few promising sectors? Should curricula of schools and universities be aligned with the needs of innovative industries? Alongside opportunities, such a strategy also entails major risks. What would it mean, for example, for the equality of opportunities between sectors and regions and, above all, for the people working there? And how would we determine which technologies are worth being promoted? Or should policy rather try to counter the growing specialisation in the economy in order to ensure the equality of opportunities – for example, by particularly supporting the weakest sectors and regions? Is the best policy response possibly “Trumponomics”? Namely, that we close ourselves off from international markets in order to escape the growing competitive pressure for the best ideas in the world?

 

If you want to read more about the YES! 2017 topic “National Innovation Strategies” you can continue to read here.

 

The topic “National Innovation Strategies” was proposed by researchers of the Centre for European Economic Research (ZEW) in Mannheim. The YES!-teams are supported by the researchers Florence Blandinieres, Paul Hünermund and Martin Murmann.

 

The YES! teams of the Albertus-Magnus-Gymnasium Stuttgart and the BBS Wirtschaft 1 Ludwigshafen have chosen to work on this topic.

 

Get to know the YES! 2017 Team of the BBS Wirtschaft 1 Ludwigshafen on their profile page here. If you would like to know more about our YES! 2017 team of the Albertus-Magnus-Gymnasium Stuttgart please follow this link to their profile page.