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How Entrepreneurial is Germany? The Institutional Context of Entrepreneurship and Business Start Up Costs in Germany in International Comparison

Abstract
The importance of entrepreneurial activities is integral to a nation’s economic growth. This paper reviews the results of the 2000 Global Entrepreneur Monitor (GEM) country report with a sole focus on Germany in evaluating its degree of entrepreneurship. The factors examined include the costs, legal procedures, and institutional context via a look at the formal and informal entrepreneurial frameworks. The view of entrepreneurship in Germany will be explored as well as comparison to other countries in the GEM report. It is found that entrepreneurial activities differ within regions in Germany and the cultural and social norms place a barrier to start-ups despite the government effort in financing and state promotion programs.
TABLE OF CONTENTS

1. Introduction……………………………………………………………….3
2. Overview of Germany’s entrepreneurship and international comparison...4
3. Institution context………………………………………………………....6 The regulation of entry……………………………………………………6 Political context- government policies……………………………………8 Human Capital…………………………………………………………….9 Education…..……………………………………………………………10 Psychological and sociological context………………………………….12 Regional context…………………………………………………………15
4. Conclusion……………………………………………………………….18
5. Works cited……………………………………………………………...20

Introduction
The German economy encountered a slow and sluggish growth for the past decade. With a high unemployment rate that has just slightly shifted upward by 0.1%, the economy’s growth is slow (Goldstein, 2007). However, the improvement is derived from and dependent on a strong global economy, especially in Asia. According to research from the Global Entrepreneurship Monitor, start-up and entrepreneurial activities