Students with a migration background find it difficult to set up a company in Germany. This is a missed opportunity to create innovations and jobs, emphasise Startup Migrants in particular. This is where the Startup Preschool initiative comes in with a three-day crash course in entrepreneurship, which took place in Hamburg in collaboration with Startup Port last weekend. We spoke to Norhan Othman, the head of operations of Startup Migrants ,who would like to see stronger networking and collaboration between local companies, incubators and startup hubs with the international specialists and young students.
Can you describe the structure of the Startup Preschool programme and how it is tailored to the needs of international students and researchers?
The main goal of the Startup Preschool is to connect international talents, both students and professionals, with the startup ecosystem of the respective city. During the Preschool, they get to know the different players in the startup ecosystem. They learn how to found a startup, if they have the right idea. We connect them with the startup support entities that can help,if they need coaching, mentoring and funding, who can help them turn their idea into reality. They get to know also which events they can attend to build teams and advance their own ideas. Participants also learn more about the different legal forms of companies here in Germany and how they can legally start their own business.
How do participants in the programme manage to develop a viable business model from a product idea in such a short time?
The Startup Preschool programme takes place over three days: Friday, Saturday and Sunday. During these three days, we have startup coaches who help the participants to work on their own ideas. First, the ideas are discussed in general. Then they start working on them in teams, based on the ideas they have already submitted in their applications. Then, they work step by step to create their own pitch decks. At the end of the third day, there is a pitching session where everyone presents their ideas and receives feedback from the startup coaches. Then we discuss with them about what happens next and which follow up programs they can apply to after the startup preschool to take their ideas further.
What unique aspects of the local startup system will be highlighted during the event? And why are they important for potential international founders?
Participants will get to know the players in the startup ecosystem and can exchange ideas with them. They will learn more about the different offers in the startup scene – especially for the early stage. They also learn how to structure their own ideas, so that they can later participate in an incubation programme. They build up their own network and exchange ideas with like-minded participants. They get to know international founders who tell about their own start-up journey in Germany and the challenges they faced.
How long has the Preschool been running? Could you tell us about the success stories or experiences of the international founders who have already taken part in this programme?
The programme has been running since 2019 and takes place in various countries such as Norway, Austria, Sweden, the UK and Germany. We have participants from different backgrounds, some just want to explore the local scene and learn more about startups and the topic of founding in order to eventually found, join or work in a startup themselves. Others already have concrete ideas that they want to work on and develop further during the Startup Preschool.
For example, one team joined the Startup Preschool in Berlin was developing a platform on which musicians can post their offerings and get hired. The team was able after finishing the startup preschool to apply for Berlin Startup Scholarship and they got it . The most important thing is that we are trying to create a pipeline for the talents. That way, they know where they can go when they finish the Startup Preschool and take further steps in their entrepreneurial journey. We are very happy about our participants who managed to go their own way, get funding and thus realise their own ideas.
What are the biggest challenges that international students face when setting up a business in Germany? And does the Preschool for startups deal with these challenges?
Firstly, there is the language barrier: everyone thinks that if they approach an institution, they won’t find anyone who will answer them in English. Many then keep their idea to themselves and don’t develop it any further. Because they don’t know what support they can get. In the startup preschool, we help them to establish contacts with interest groups and contact persons in the various institutions who already speak English. That way they know that they can turn to them and ask their own questions. This is how they begin to build fruitful relationships with the various institutions.
Foreign students know very little about the opportunities for start-up support in Germany, including the startup hubs in their own universities. And that applies to the majority of start-ups in Germany. It was really surprising to see that the start-ups hubs at the universities have very little number of the international students, even though around 25 percent of the university students in Germany have an international background.
So we try to bridge the gap between international students and the startup ecosystem as much as possible. We do this for a wide range of disciplines so that we can ensure that ideas from a very broad spectrum of different disciplines and backgrounds are supported.
How does the regulatory environment and Germany affect international students who want to start a business? And what advice would you give them on how to deal with German bureaucracy?
I think the main problem is that there is no clear legal status at the moment for the entrepreneurs in Germany, for example for students who want to start their own company after graduation. They cannot do that because they need a residence permit to stay here. They need a permanent employment contract to get their residency. This means that they cannot stay in Germany after their studies unless they have such an employment contract. Of course, this also means they cannot set up their own startup. But we are trying to communicate this problem to the other players in the scene.
We are looking for ways to enable them realise their own ideas and, of course, obtain their own residence permit. In many cases, we advise them to work on their startup ideas on part time basis and keep their own main job in order to keep their residency.
What resources are typically available to international students and entrepreneurs in general? And how can they effectively access these resources?
There are quite some schemes of support. But they are not always well known for the students. Here in Germany, there are start-up grants in almost every state like the Gründer and EXIST stipendium. These can help the talents work on their ideas by paying them some sort of salary to work primarily on their idea without having to have some sort of full-time job to make a living.
At the moment, the numbers for these kinds of grants are limited. But I think there should be more opportunities like this so that more start-up ideas can be realised.
Can you talk about the importance of networks for international students starting a business in Germany and how they can build a supportive community?
I would say that in the Startup Preschool we try to help them build such a community and network. We want to bring the international students together with the various start-up support entities in Germany. We are always convinced that cooperation is very important in order to be successful in the startup scene and to take into account the different backgrounds of the scene.
With the Startup Preschool, we are trying to give international talents the opportunity to network and get to know more people who might be interested in founding a company. And of course, we also encourage them to participate in various other networking events and find the right team members or co-founders. We try as much as possible to make sure that they are well informed about such events so that they can start their own community when they finish the 3-day program.
What role does cultural integration play in the success of a company that a foreign student sets up in Germany?
I think what we have noticed in dealing with different international students is that it is always overwhelming to come or move to a new country. You have to learn the language; you have to start creating your own network, like you’re basically starting from scratch. And then you start studying and want to do your Master’s, Bachelor’s or PhD. So you have to start from scratch and concentrate on many things. This makes it somewhat difficult for people interested in founding a company to explore the various options in the German ecosystem, for example. That is why it’s very important that the various players involved in supporting start-ups take action on several levels.
The newcomers are undoubtedly needed on the domestic market. That is why it is important to be accommodating, but also for the support units to work together. To ensure that the international community is empowered and able to give their best to the community, it is really important to work on these aspects and give them tools to integrate easily and understand the system as much as possible.
What key competences should international students focus on to increase their entrepreneurial success in the general market?
Firstly, they need to be keen observers of the market. They need to see what is already out there, what is happening and what is really needed, what challenges the market is facing and which problems or opportunities are there. This also has to do with understanding the culture and being integrated into the community, because when you are integrated into the community, you understand better what is really needed.
If you want to start a business, you need a strong network. You need communication and social skills, you need to go to events and talk to people. And you have to make sure that you are constantly learning, that you are constantly expanding your knowledge.
You need to understand the different tools that can help you. I know that sometimes, unfortunately, international founders do not have a lot of time for that. But I think that there is a number of events, such as “What Startup Migrants do” and other events that take place in this context, to get concentrated information in a very short time to understand the scene.
Of course, you also have to learn the German language. But it also takes time to be adequate for everyday life usage. The important thing is not to be afraid of knocking on doors, approaching the various actors in the scene and getting information. It’s sad that many ideas from the international students are being lost as they have no contact person or knowledge about the possible fundings. They did not know if their ideas were welcome. There are many startup support entities that can help if someone has a start-up idea, there are acceleration and incubation programmes. Therefore, we always advise people not to be afraid to talk to people and express their ideas, this way they can get the right help.
How satisfied were you with the Preschool at the Startup Port over the weekend?
The startup preschool was launched for the first time in Hamburg in collaboration with the Startup Port team. We have noticed a high demand through the applications submitted by the international students and professionals living in Hamburg who brought brilliant ideas to the weekend. The space in Startup Port was really engaging and fun for our participants. The participants got the opportunity to connect and learn from Thorsten Sobe, the founder of Elbwire GMBH, about his founding journey in Hamburg. Also, they had the opportunity to understand more about the Startup Ecosystem and the available funding options there.
When will there be another event like this in Hamburg?
We work closely with the Startup Port team to find ways for doing such an event more frequently in Hamburg and most importantly find the right funding for it. We hope to have it running in Hamburg 4 times per year in order to reach as much international talents as we can and empower them in a way that enables them implement their own startup ideas.
