Insufficient talent pool hinders new business ventures
Germany is aiming to improve its competitiveness in the global startup scene by modernizing its visa processes. According to Magdalena Oehl, the deputy chairwoman of the Startup Association and founder of the HR-tech platform Talent Rocket, attracting and retaining international talent is crucial for positioning Germany favourably.
A significant number of scaleups in Germany have nearly half of their employees coming from abroad, with English being the primary working language in three out of four scaleups. However, young talents face major obstacles, particularly outdated visa processes.
The visa process in Germany is hardly digitized, leading to uncertainty and inefficiency. Applicants often have no way of knowing their status or when to expect a response. The process is lengthy and fragmented, often taking more than 10 days in other countries, contrasting with efficient processes in some countries.
Magdalena Oehl believes that making it difficult for highly qualified talents to come to Germany worsens the skills shortage, which threatens to disrupt the dynamics of the startup scene in Germany. The skills shortage is causing some startups to forgo growth due to unfilled positions, especially in IT, sales, and marketing, where there is a particular demand for skilled workers.
To address these issues, Germany can implement several key reforms.
- Expand and Promote the Freelance Visa Program: The 2025 Freelance Visa offers a 3-year renewable residence permit for just €75, allowing skilled professionals to work independently across 26 Schengen countries. Expanding eligibility to cover sales and marketing professionals and simplifying application documentation would further attract such talent.
- Lower Barriers for Job Seekers without Contracts: Recent reforms include the Chancenkarte, which allows job seekers to enter Germany and look for work onsite. Enhancing and widely communicating these initiatives can attract high-potential IT, sales, and marketing candidates who may not have secured a contract upfront.
- Simplify and Accelerate Startup and Entrepreneur Visas: Broadening access criteria and streamlining assessment procedures could make Germany more competitive in attracting international entrepreneurs. Tailored startup visas for IT, sales, and marketing founders with clear, streamlined pathways to permanent residence and company scaling support would be crucial.
- Digitize and Standardize Visa Processing: Integrating application processes digitally with clear timelines and feedback can reduce bureaucratic delays and provide a better candidate experience. Consistency across regions and embassies is also essential.
- Provide Post-Arrival Support and Integration for Retention: Beyond visas, offering language support, networking opportunities, and access to startup ecosystems helps retain international talent in competitive fields like sales and marketing.
In summary, Germany’s modernization should focus on leveraging its existing freelance and job seeker reforms, creating specialized startup pathways for sales and marketing talent, digitizing visa processes, and ensuring long-term integration support to become a top destination for global startup talent in IT and related sectors.
- To enhance Germany's position in the global startup landscape, it is vital to transform the country's outdated visa processes, as the lengthy and fragmented procedures are deterring highly skilled professionals in technology, sales, and marketing, industries crucial for startup growth.
- To foster innovation and attract international talent, Germany can streamline its visa processes by digitizing applications, providing clear timelines, and implementing tailored startup visas for IT, sales, and marketing founders, while also offering post-arrival support to facilitate integration and retention.
