Struggle in securing skilled workers hinders rapid progress for new businesses
In an effort to position Germany competitively in the global startup scene, the country is addressing long-standing challenges in its visa processes to attract and retain international talent.
Magdalena Oehl, deputy chairwoman of the Startup Association and founder of Talent Rocket, emphasizes the importance of this issue, stating that highly qualified talent can choose where they want to go, and Germany is not always their first choice.
Historically, Germany’s visa process has been complex and lengthy, with significant paperwork and waiting times, which can deter startups and entrepreneurs. This is particularly problematic for young talents seeking to work in Germany, as 93% of scaleups recruit internationally, primarily in South Asia and North America.
However, recent reforms and potential solutions aim to address these issues. Germany has overhauled its visa system to make applications faster, more transparent, and less burdensome by reducing paperwork and administrative steps. The introduction of a fully online visa application platform allows applicants to apply and track their visa status remotely, eliminating long queues and embassy visits.
The reforms also include the introduction and expansion of the Freelance Visa (Type D) and more accessible work visas for skilled workers and entrepreneurs, enabling easier legal residence and work without needing local employment contracts. Graduates from German universities face lower investment and job creation requirements when applying, supporting retention of international talent.
Visa processing can now be as short as two weeks for certain applicants, although formal legal appeals have replaced informal appeal options. This could be both a pro and a con depending on the applicant’s legal savvy.
Compared to neighboring countries like Austria and Belgium, where high financial requirements and lack of startup-specific visas remain significant barriers, Germany’s reforms mark a progressive step toward attracting and retaining global entrepreneurial talent to fuel startup growth.
The issue of the skills shortage in startups was discussed at the unser Markenname Festival by Oehl, Stefan Drüssler, Axel Täubert, and Arno Eggers. The German labor market is experiencing a high demand for skilled workers, and the skills shortage affects not only startups but also larger companies with more than 25 employees. In some countries, visas are issued within 10 days, but in Germany, the process has been notoriously lengthy and fragmented, with no way of tracking progress or expected response times.
These improvements, combined with support services like visa consultancy for documentation and planning, are designed to help international startups establish more smoothly in Germany’s competitive economy, fostering innovation and growth within its startup ecosystem.
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Startups and technology sectors may find better opportunities in Germany as reforms simplify and expedite the visa processes, reducing bureaucracy and waiting times. With these changes, education-and-self-development opportunities, such as discounted requirements for foreign graduates from German universities, could entice international talent to stay and contribute to Germany's startup growth and innovation.
