Entering German Market :: essays research papers

During the last decade German economy is stagnating, or even decreasing. wholeness of possible reasons is the lack of entrepreneurship in German companies. Old companies usually be too big and unwilling to change something inside, thus German brass decided to nominate establishment of new small and medium enterprises. current agenda 2010 introduces the strategy for Germany to recover the economy and become even much competitive. In the article Starting your business with subsidies in Invest in Germany magazine is written that there are more than 3000 incentive programs for sale for investors. The program is financed by the federal government, the states and international organizations, including the European Union. The aid is acquirable for business start-ups in a way of funding and consulting. Additional support is proposed to other investment, research and development, and training, as well as improve and defend the environment. The aid comes in the form of investment pr emiums, additional capital allowances, regional support and special credit programs.Subsidies are the main form of support. big subsidies are applied for new eastwardern states and for other incentive areas. inducement areas mean that economy there should be encouraged, industry is not as developed and investors need additional incentives to choose these areas but not more developed ones. Distribution of these subsidies is generally subject to approval by the European Union.One of the programs to finance investment is Joint obligation program. Cash grants canonic and paid to investors to a lower place this program during 1999 2001 were 8.6 billion euros, and the budget for 2002 2006 is 8.1 billion Euros (http//www.state.gov/e/eb/ifd/2005/42039.htm). All investors local and foreign are treated equally under the program, but financed sum depends on the region. The government has placed particular strain on investment promotion in the new states of the former East Germany a nd has offered a large number of incentives to promote economy in those areas. dividing line Guide in Invest in Germany (http//www.invest-in-germany.de/en/index.php?redirect=http//www.invest-in-germany.de/en/research/businessguide/index.php?topcat=20&cat=1063656685824246400&lang=en) lists those conditions as the most significant for interchange grants under the Joint Agreement program- Funds from the Joint Agreement are granted at the authorities discretion - Applications must be filed before the start of the investment - Investors must make a colossal contribution to the investment project from their own capital as check of their commitment - Cash grants are subject to taxation - An investment outcome may take up to 36 months from the start of a project.