On the Road to a “Culture of Entrepreneurship”?: Assessing Public Support for Entrepreneurship and SMEs in Germany

Abstract

Traditionally, policy interventions have not specifically fostered entrepreneurship; rather interventions generally support both new and small firms. This is especially true in Germany. The first program supporting new businesses was established in 1949. Today Germany has several hundred programs with a mixture of public and private supporters. Since the mid-1990s, several new approaches to support SMEs and entrepreneurship evolved. For example, the national government, along with several state governments, turned to public partnerships. New support approaches are increasingly identified through competitions, with an emphasis on public–private partnerships. In general, start-ups are supported in an attempt to push new businesses and employment opportunities; although some of these initiatives are bundled with existing programs without an apparent overall strategy. Nevertheless, innovative elements include a shift toward public–private networks for mentoring and coaching new entrepreneurs. This often goes hand in hand with the development of integrated approaches where assistance is not limited to only finance or consulting.