A recent study has revealed that there are 800.000 self-employed migrants in Germany, providing the country with around 2,3 million jobs.

Migrant start-ups on the rise

A recent study by the Bertelsmann Foundation has found that the number of self-employed people with a migration background in Germany has increased by 200.000 in 2005 to almost 800.000. Their companies now provide Germany with around 2,3 million jobs, 50 percent more than 2005.

The number entrepreneurs with a migration background, which includes people who immigrated themselves or have at least one parent who was born in a different country, has risen largely due to a significant increase in the migrant population. Despite the increase, only around 10 percent of the migrant population is self-employed.

The importance of start-ups

According to Garcia Schmidt from the Bertelsmann Foundation, “self-employment is a driver for higher incomes and prosperity.” Indeed, entrepreneurs in Germany earn a salary of around 2.500 euros a month on average, 50 percent more than regular employees from a migration background.

In 2005, 38 percent of migrant start-ups operated in the trade and hospitality industries. This dropped to 25 percent in 2018, with migrant entrepreneurs moving into other industries like construction, service providers and innovation.

The Bertelsmann Foundations study found that, if better state subsidies were provided and the migrant population were encouraged to study and achieve higher qualifications, their self-employment rate could increase from just under 10 percent to 15 percent.