1. German Business Etiquette
By: Aubrey Gum, Haley Challberg,
Madison Swiney, Maria Hawkins

2. The flag consists of 3 equal bands of Germany’s national colors: black, red, and gold which were the colors that the German soldiers wore during the Napoleonic Wars
There have been many different flags in German history, this current one was first adopted when Germany became a republic in 1919, It remained as Germany’s flag until the Nazi’s took power in 1933 and then was reinstated again after World War II.

3. Located in central Europe, bordering the Baltic Sea and the North Sea, between the Netherlands and Poland, south of Denmark
Capital: Berlin located in Northeastern Germany and has a population of 3.5 million people
Germany is made up of 16 states

4. Demographics Population: 80.8 Million Government: Federal Republic
Legal System: Civil Law System
Economic Structure:
Fifth largest economy in the world
World's largest exporter
Highly skilled labor force
Lack of natural resources
Physical Infrastructure: Developed
Cultural Heritage: 91.5% German, 2.4% Turkish, 6.1% Other
Language: German
Religion: 34% Protestant, 34% Roman Catholic, 3.7% Muslim
Per Capita Income: $46,200
Unemployment Rate: 4.5%
Second most populous nation in Europe after Russia
Leading exporter of machinery, vehicles, chemicals, and household equipment
lack of natural resources makes Germany highly dependent on other countries

5. Educational System
At the age of 10 German students get placed into 1 of 3 different school tracks
Hauptschule
Realschule
Gymnasium
All public universities in Germany are free
The track the student is put in is either chosen by the parent or recommended by teachers depending on the school and is based on academic achievement..
Hauptschule- Students who did not have good grades in elementary school go here. Learn traditional subjects like the other two tracks but at a slower pace and lower level. After that they begin to focus on apprenticeships with hands on training. Jobs include
Realschule- students with average grades in elementary school go here. They learn traditional subjects and then can chose from a wider variety of apprenticeships than students at hauptschule and can go to trade schools after they graduate. Types of jobs include
Gymnasium- Students with good grades in elementary school go here. They learn advanced subjects and this is the only path that when completed qualifies a student for entrance into a university.

6. Appearance
Dress: Formal and conservative. Casual wear is frowned upon.
Women
Little makeup
Few accessories
Business appropriate dresses, dark colored suits
Men
Dark Colored Suits
White Shirts
Solid Business Ties
Angela Merkel: German Chancellor

7. Appearance Continued Body Language: Minimal physical contact
Direct Eye Contact
Generous amounts of personal space
Gestures:
Simple, firm handshakes in typical business encounters

8. Behavior Low levels of entrepreneurial spirit Dining Etiquette:
Never arrive early; show up at the scheduled time
Handwritten notes thanking the host
Gift Giving:
Not very common unless there is a social event
Small gifts, not overly expensive
General Business Behaviors:
Punctuality is extremely important.
Schedules are well thought out.
Decisions and behaviors are really calculated; Germans do not like surprises.
Negotiations: extremely bureaucratic

9. Communication
Greet every person in the room with handshake and title/rank to show respect
Wait for host to introduce you to the group
Most Germans learn English
Interpreters can come in handy
Schedule appointments well in advance; phone, fax, or mail
Limit small talk as much as possible
Business cards with your title

10. Hofstede’s Cultural Values
Low power distance
Strong middle class
Individualistic society
Focus on parent/ child relationship
High masculinity
Live to work mentality
High uncertainty avoidance
Long term orientation
Pragmatic country

11. Promotion of Entrepreneurship
Loan opportunities
Federal and State loans
ERP Start Up loan
Intellectual property highly protected
Patent laws
Investor rights protected
enforced by Judicial system

12. German Entrepreneurship
Good economy
Sufficient job surplus
Lack of incentive to join
Funding not as sufficient
High uncertainty avoidance
Not a social norm
Early entrepreneurial activity decreased

13. Ease of Entrepreneurship
Ranked number 15 for business-friendly regulations
Advantages:
Recent deregulation of the labor market
Great volumes of trade
Schengen Travel Visa
Market demand for quality
Germany contains a great environment for entrepreneurship due to it having the largest economy in Europe. A large economy means more opportunity for a market and the business opportunity in Germany is only growing.
Not only is Germany a good environment for entrepreneurship becomes of its economic growth, but the world bank ranked Germany 15 in terms of business-friendly regulations.
Advantages to starting a business in Germany include:
the recent deregulation of the labor market in an effort to increase employment, this will make it easier to find highly skilled human capital.
secondly, because Germany’s location is in the middle of the EU, some of the world’s largest trade events are held there, making Germany and attractive place for U.S. firms to build their European and worldwide expansion strategies.
Also, the business visa for Germany allows an entrepreneur 3 months to set up their business and is easy to obtain.
and lastly, the German market has a true demand for quality. German’s do not mind spending money on a high quality product, especially if it is technological.

14. Ease of Entrepreneurship Cont.
Disadvantages:
Difficult to raise capital
Threat of terrorism
Language Barrier
Difficult to hire non-Germans
Tax laws
Trade Barriers:
Import Regulations
Foreign Trade and Payments Act
Common Customs Tariff
Although Germany’s economic growth makes it an attractive country for entrepreneurs, there are many other factors that may discourage foreign investment.
Some barriers that an entrepreneur would face in Germany include:
Difficulty raising capital – Like Haley mentioned, Germans are more conservative and risk adverse, making it difficult to receive the capital necessary to start a business
Secondly, with Germany’s recent acceptance of Syrian refugees, the threat of terrorism makes it an unattractive place to start a foreign business venture.
Next, there is also an obvious language barrier in Germany if you are a foreign entrepreneur.
I also found that it is difficult to hire non-Germans; you must show that you are not unnecessarily taking away a job from a German.
Another thing that may not be attractive to new business owners is Germany’s high marginal tax rates and complicated tax laws.
Lastly, trade barriers faced in Germany include:
Import regulations; especially in regards to agricultural goods due to the EU’s Common Agricultural Policy, it may lead to difficulties getting supplies from countries outside of the EU for your business.
(CAP: limits imported agricultural goods to force your business with local farmers)
In addition, the Foreign Trade and Payments Act allows the imposition of restrictions on inward and outward foreign direct investments for the purpose of foreign policy, foreign exchange, and national security.
and lastly, the Common Customs Tariff is applied to any import coming into the EU.
In conclusion, there are many advantages and disadvantages to entrepreneurship in Germany, but even with such great economic growth and the access to a broad market, the risks and difficulties of starting a business in Germany overweigh possible profits.

15. Works Cited
Business meeting etiquette. (2014). Retrieved January 7, 2016, from
any/
German School System. (2015). Retrieved January 8, 2016, from
Germany. (n.d.). Retrieved January 7, 2016, from
Germany - Language, Culture, Customs and Business Etiquette. (2014). Retrieved January 7, 2016,
from
Foreign Businesses in Germany. (n.d.). Retrieved January 7, 2016, from
nesses-in-germany.html
Chapter 1: Doing Business in Germany. (2015, July 28). Retrieved January 5, 2016, from
InGermany/index.asp

16. Works Cited
Chapter 5: Trade Regulations. Customs and Standards. (2015, July 28). Retrieved January 6, 2016,
from
oingBusinessInGermany/index.asp
Kennaway, J., & Brune, M. (n.d.). Tips for starting a business in Germany. Retrieved January 5, 2016,
from
Germany_ html
Morell, K. (2012, March 8). Doing Business in Germany. Retrieved January 6, 2016, from
Ease of doing business index. (n.d.). Retrieved January 7, 2016, from
The Flag of Germany. (2015). Retrieved January 8, 2016, from
The World Factbook. (2015). Retrieved January 8, 2016, from
Trade Regulations and Standards in Germany. (2011, March 14). Retrieved January 6, 2016, from
s-in-Germany.html
What about Germany? (n.d.). Retrieved January 8, 2016, from