SMEs and start-ups – a dream combination
Established SMEs and creative start-ups – a collaborative combination that is being promoted by the German government, too.
Since the COVID-19 pandemic, there has been a significant increase in Germany in the desire to start a business: the number of start-ups rose by 15 percent in the first half of 2024 compared to the first half of 2023. Startups are often advised to join forces with SMEs: the idea is to team up innovative, young, creative companies with established, economically stable small and medium-sized enterprises. This excellent idea seems to have been somewhat forgotten recently: there has been a decline in this type of cooperative venture.
Exemplary collaboration between SMEs and start-ups
Managing director of Marantec, a medium-sized manufacturer of garage door openers, Kerstin Hochmüller believes this kind of cooperation offers great opportunities. “I firmly believe that start-ups are great partners, especially when it comes to things like digitalisation and sustainability,” she told the magazine Wirtschaftswoche. Her company works with Cozero, a start-up that uses software to help companies calculate and reduce their CO2 emissions. Thanks to her collaboration with the established medium-sized company, Cozero founder Helen Tacke manages without venture capital. “By not taking millions from venture capitalists, we’re dependent on ensuring we focus on creating solutions for companies that generate clear value and that are willing to pay. That’s what our business model is based on.”
Federal Government supports Initiative Mittelstand Digital
The Mittelstand Digital initiative funded by the Federal Government also sees cooperation between SMEs and start-ups as an advantage, since each side benefits from sharing experience in terms of mindset and working methods. According to the Rationalisation and Innovation Centre of German Business (RKW), differing areas of activity, locations and networks are a hurdle to more cooperation. The RKW Competence Centre is working to overcome these obstacles and recommends places where the two sides can get to know each other: trade fairs such as the industrial fair Hannover Messe, and also programmes run by industry and sector associations or by chambers of industry and commerce. Established companies and newcomers can meet in these settings in a relaxed atmosphere and initiate collaborative ventures.
