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We don't need startups, we need Digital-Mittelstand

mertbulan.com

91–100 of 244 posts

Re: We don't need startups, we need Digital-Mittelstand

#91
post #20
post #15

Earlier quoted context omitted.

Try opening a business in Germany to find out why.

I did, it was super easy.

It takes months and you’re required to go to a notary at least twice and you have to put down 12500/25000EUR.

This is absolute nonsense. In the UK you can open a limited company with 12GBP in a matter of days. Oh and it’s completely online, something which Germany will never have in the foreseeable future.

Re: We don't need startups, we need Digital-Mittelstand

#92

I'd say the biggest issue with this article is that it only suggests solutions which are already underway. 1. Salary Grants => SEED / EXIST stipends 2. Simplify Bureaucracy and Regulations => Who doesn't want that? 3. Expand VAT Exemptions => Council Directive (EU) 2020/285 will bring this law: "For SMEs conducting cross-border transactions, a cumulative turnover cap of €100,000 across all 27 EU member states applies…

> I'd say most of the EU is already pretty good at this

Not Germany though. I don't think that's as easy to change as VAT changes. And since a bunch of their examples are primarily B2B, they wouldn't care about VAT changes either.

Re: We don't need startups, we need Digital-Mittelstand

#94
post #44
post #24

Earlier quoted context omitted.

I realized a few weeks ago how broken IT in Germany is when I talked to a guy who turned out the CIO of a known German retail company. We did not talk about technology, exciting projects, ideas or similar, but about the complexity of the privacy act and "Scheinselbständigkeit" (false self-employment, which is a huge issue for start-ups and self-employed people in Germany). Out brains are so busy thinking about stuff…

I think you got this wrong. Laws against Scheinselbständigkeit are protecting individuals from being exploited, and it's one of the things that characterizes the EU. Don't forget that outside of Europe, most big economies were built on the ongoing exploitation of the working class. I am not saying this didn't happen in Europe, but at least there are efforts to curb this. So a CIO complaining that he can't exploit peo…

Nobody is being exploited, most people _want_ to self-employ to not get chewed by income tax.

Most states in Europe treat you like you're mister money bags for anything above 50k a year.

You can choose:

- Cost of living (read Housing)

- Taxation

- Income

Government's need to curb one of the first two or boost the third, otherwise people will always be looking for the exit door.

Re: We don't need startups, we need Digital-Mittelstand

#95
post #58

Earlier quoted context omitted.

Well, yes – you can't typically open a business in 30 minutes here but the process is not exactly complex either. If you cant' figure out the administrative part of opening a company, maybe you shouldn't. It also keeps baffling me how that is of any significance. Are people afraid that their "paradigm shifting industry disrupting" idea will lose validity over the the next week? If so, maybe the idea was bollocks to b…

That you (and apparently the German bureaucracy) think people who can start a business and people who can tick administrative boxes are the same type of person explains German economic performance in the last 5 years.

It sounds strange but I believe businesses should bill the government for all work at their regular rates. If the assignment requires expertise that needs to be hired those rates should apply. Set some % fee for urgent work.

Re: We don't need startups, we need Digital-Mittelstand

#96

For start Germany needs better internet connectivity. Getting 1gbps symmetric fiber or 5G coverage is a scifi! Even Romania has better infrastructure!

I'm always happy to criticize the internet connections and the price for them in Germany...but it's most likely not the main reason that is holding back businesses.

Re: We don't need startups, we need Digital-Mittelstand

#97
I think Mittelstand is perhaps misdirecting away from a more interesting conversation. Reading between the lines, this highlights an inherent bias in the majority of American companies to provide service to extract value as opposed to providing service for public benefit. Simply put, it's "move fast and break things" versus "WE DO NOT BREAK USERSPACE."

If you want to dig deeper, this is a consequence of America beginning in recent history as a frontier settlement, primarily attracting aggressive, adventurous go-getters to make their fortune. Extracting for personal gain was baked into the culture from the beginning and is an artifact that has persisted to this day.

Re: We don't need startups, we need Digital-Mittelstand

#98

I'd say the biggest issue with this article is that it only suggests solutions which are already underway. 1. Salary Grants => SEED / EXIST stipends 2. Simplify Bureaucracy and Regulations => Who doesn't want that? 3. Expand VAT Exemptions => Council Directive (EU) 2020/285 will bring this law: "For SMEs conducting cross-border transactions, a cumulative turnover cap of €100,000 across all 27 EU member states applies…

> 2. Simplify Bureaucracy and Regulations => Who doesn't want that?

European leadership and a fair chunk of the population. They're the ones who bought it in, if they didn't think it was worth the trade off they wouldn't have instituted it.

It seems like just yesterday we had people lining up to praise their bureaucratic takeover of iPhone charger design, for example. If the EU bureaucracy has time for that, what matter is too small for them to be involved in?

Re: We don't need startups, we need Digital-Mittelstand

#99

The authors examples of “Digital Mittelstand” companies are not businesses at all but tiny “creator economy” side projects. These do not scale to 30% of GDP in the same way high value B2B industrial equipment does (in manufacturing you happily pay $100,000 for a piece of machinery because it can turn inputs into more valuable outputs at scale). Instead of coming up with incorrect ideas about what the government shoul…

Europe is dying. It is an old socialist relic, with a completely outdated model of reality. The successes of the extreme left and right shows that the political nobility are done.

Sadly europe never realized that low taxes, capitalism and liberty is what drives wealth.

I wonder if, in a generation, when the best brains moved to the US, asia and argentina, the continent will finally awake from its socialist slumber?

Hong Kong managed to go from a peasant village to a global financial center in a generation or two. In theory, it should be possible for europe to do the same. But in order for that to happen, there needs to be insight into the sickness, and awareness of the cure.

I'm happy I left. After I left high tax western europe I basically doubled my salary after tax! =)

Re: We don't need startups, we need Digital-Mittelstand

#100

For start Germany needs better internet connectivity. Getting 1gbps symmetric fiber or 5G coverage is a scifi! Even Romania has better infrastructure!

Fiber has been laid out in many areas already, it won't be long until most households are upgraded. But to be honest it's not as much of an issue as people make it out, in most areas you can get 250 Mbit downstream and 50 Mbit upstream through DSL, that is plenty for most home use cases, there's just not enough demand for higher speeds. Don't tell me people are regularly maxing out their 1 Gbps lines. In most rural p…

For some people internet is like electricity (or even more important, I can go 10 hours without electricity with UPS). It is a baseline for consideration to even start.

How long it takes to upload 500GB video, dataset or docker images on 250/50mbps DSL line? 24 hours in theory! Like two days in reality!

On 1gbps it is 1.3 hours in theory, about 2 hours in practice!

I understand that most people do not need such connectivity, but for many people it is question of staying productive and profitable. I work in remote team, and we do share such data quite often.

DSL line is good as a backup, but it is useless. Perhaps I could deal with limited speed. But latency and throughput goes to hell when under load. I would have to pause all other traffic while making calls!

In Romania I have 4 plans in single flat. Fiber, ADSL, and two unlimited (like no speed throttle) 5G SIMs. About 90 euro monthly.

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