According to an article “Germany falls further behind” from Manager Magazine (German), a recent Ernst & Young study pronounces Germany as one of the least new company friendly G-20 countries. In addition to the usual culprits (bureaucracies and costs), the article also discussed German culture’s intolerance of failure as another key reason.

It’s an interesting idea I had not considered before. I find Germans to be very risk adverse, which is why most people don’t leave jobs until they have new ones - despite 3 months notice! Germans also love security, which is why they save a great deal and there seems to be an insurance for everything (e.g. Berufsunfähigkeit). Germans are also very good at creating rules and systems, hence all the bureaucracies. True, these characteristics create hurdles to new businesses.

Rules and systems

But this culture of systems and rules also makes Germans great at tackling complex problems, especially technological ones. For example, the semiconductors for the iPhone were developed in Germany instead of California*.

The fact that Germans also follow these rules makes driving 220 kmh / 130 mph possible. Because most people buy tickets, running a public subway system on the honor system works and saves time queuing to buy tickets and get on the platform.

Two sides to the same coin

Some days, I hate this system of rules and bureaucracies. For example, I recently received a letter from the Agentur für Arbeit (Employment Office) that denied my request for startup funding because I decided to leave my own employer so it was foreseeable that I should require more funds. Ouch!

But on most days, I am reminded I live in one of the most liveable cities in the world.

And I love it. 

Sources

Duhigg, Charles and Keith Bradsher. How the U.S. Lost Out on iPhone Work. New York Times. 21 January 2012. 

Neßhöver, Christoph. Deutschland fällt weiter zurück. 24 January 2012. Manager Magazin online.