Read news from:
Austria
SHARE
COPY LINK

TECH

Berlin v. San Francisco: Which is better for startups?

There's already quite a bit of an exchange between Silicon Valley and Berlin's so-called Silicon Allee, but which city is truly better for the startup scene? Graphic design marketplace 99designs shares with The Local how the two compare.

Published: 10 August 2017 17:14 CEST
Berlin v. San Francisco: Which is better for startups?
Berlin: Thomas Wolf/Wikimedia. San Francisco: kropic/Depositphotos

Berlin is already gunning to become Europe’s startup hub in the wake of Brexit, with hopes that London will become less relevant.

SEE ALSO: London v. Berlin: Which is truly Europe's startup hub?

But will Berlin ever be able to compete in the same league as the San Francisco Bay Area’s tech scene?

Online design marketplace 99designs did some research on the subject to compare the two cities side-by-side. Here’s a look at how they match up.

Starting a startup

According to 99designs’ findings, Berlin seems to have slightly better benefits for entrepreneurs. It takes less than seven days to launch a business at the cost of €700, compared to San Francisco’s seven- to ten-day time frame at the cost of €788.

Source: 99designs
 
As far as taxes go, Berlin's rates are higher with sales tax at 19 percent compared to San Francisco's 10 percent, and the corporate income tax rate in Berlin at 15 percent versus San Francisco's 9 percent.
 
Living and working
 
But while Berlin's taxes might be higher, its cost of living is certainly much lower. Internet services are €23 monthly in the German capital, compared to twice that at €47 in San Francisco. Berlin's far superior public transport – which this San Franciscan turned Berliner can attest to – is also much more affordable, at roughly €63 per month compared to €79.
 
Going out and enjoying life outside of work is also much less expensive in Berlin – just €3.20 for a beer at a bar beats San Francisco's €5.40, while the money you'll save on a €2.50 cappuccino compared to a €3.90 in California could almost buy you a second one. Lunch in Berlin might set you back €8, but that's much less than San Francisco's €13.50 meal.
 
And we haven't even gotten to rent yet. You could rent four separate one-bedroom apartments in Berlin's city centre for €749 each per month before you'd reach the €2,936 necessary to afford just one in central San Francisco.
 
Perhaps that's why Mercer rated Berlin much higher in its 2017 quality of life rankings – 13th place for the German capital and 29th place for San Francisco.
 
Still, it's probably a good thing Berlin is so cheap since software engineers there make about half as much as what those in San Francisco do – €49,000 compared to €100,000 per year.
 
Source: 99designs
 
The people
 
The overal demographics of the startups scenes in both places are fairly similar. The average age of founders is 32 in Berlin and 31 in San Francisco. Both cities also have relatively few female entrepreneurs: 13 percent of Berlin founders are women while 16 percent of San Francisco founders are women.
 
They also have fairly similar rates of immigrants becoming business starters, with 43 percent of Berlin's startup launchers being non-German and 46 percent in San Francisco being non-American.
 
But Berlin also has a much more international focus: 42 percent of startup customers there are foreign, versus 30 percent in San Francisco.
 
Source: 99designs
 
99designs is an on-demand design marketplace for freelance designers and businesses of all sizes. To see the full infographic and research by 99designs, check it out here.
For members

WORKING IN GERMANY

Four steps to take straight away after losing your job in Germany

Losing a job can be a nightmare situation for foreigners in Germany - but following these simple steps will get you back on your feet in no time.

Published: 10 September 2024 16:34 CEST
Updated: 15 September 2024 08:14 CEST
Four steps to take straight away after losing your job in Germany

In times of economic downturn, layoffs are far from unusual – but that doesn’t make it any more difficult for the people who find themselves suddenly left without work.

For foreigners in Germany, the situation is even more frightening. You may wonder whether your residence status is in jeopardy, how hard it will be to find another position, and whether you can support yourself while you look for another job.

Though it may be hard to think clearly at a time like this, following these four simple steps will set you in good stead to move forward – and hopefully, it won’t be long before another dream opportunity comes your way. 

1. Negotiate your terms 

Before signing or agreeing to anything, it’s crucial that you’re familiar with your rights and understand how much notice your employer has to give you and what kind of settlement you may be owed.

Generally, the rule of thumb is that you get half a month of severance for every year you worked at the company. That said, higher settlements can be negotiated in return for signing a termination agreement (Aufhebungsvertrag), so you may want to seek legal advice before settling. 

Even during a probationary period, your employer will also have to give you a certain amount of notice before your last working day. During the interim, you can either work for the company or be put on what is known as gardening leave in English, where you stay home but are paid as if you were working.

This can all be negotiated as part of a termination agreement, so you should think carefully about what works best for you and consider speaking to your labour council (Betriebsrat) or a legal specialist before making any firm decisions. You should also be aware that you have no obligation to sign any agreement and can legally dispute the layoff if you want to. 

READ ALSO: Can I get unemployment benefits in Germany if I quit my job?

2. Get all the necessary documents from your employer

Once the terms of the layoff are final, ensure that your employer gives you all the necessary documents you need to navigate the next phase of German bureaucracy.

The main two to think about first are the confirmation of work (Arbeitsbescheinung) and the confirmation of your holiday entitlement (Urlaubsbescheinigung).

The first can be sent to the Agentur für Arbeit (jobcentre) as proof of your last job and recent layoff, while the second will help your next employer calculate your vacation days for the rest of the year.

An Arbeitszeugnis, or German letter of reference

An Arbeitszeugnis, or German letter of reference. Photo: picture alliance/dpa/dpa-tmn | Zacharie Scheurer

On top of these documents, you’ll want to ask your employer for a letter of reference (Arbeitszeugnis), which is useful for finding a new job in Germany.

You should also keep hold of your last payslip and statement of earnings (Lohnsteuerabrechnung), which are helpful for tax purposes and may also be requested by the Agentur für Arbeit.

Speaking of which… 

3. Register as unemployed with the Agentur für Arbeit

As soon as you know that you are soon to be unemployed, you should register as a jobseeker with the Agentur für Arbeit. To get full unemployment benefits, you usually have to do this within three days of receiving your termination notice or at least three months before leaving.

Depending on what type of residence permit you’re on, you may or may not be entitled to long-term unemployment benefits (ALG II), but most employees are able to get unemployment insurance (ALG I), which covers a proportion of your former salary while you look for a new role.

It’s important to be a little bit careful here, as claiming long-term unemployment benefits (ALG II) can affect any future citizenship applications. Any severance pay you agree to can also result in you losing some months of unemployment benefits, so these are all factors you will have to consider while deciding on the best way forward. 

READ ALSO: What happens to your work permit if you lose your job in Germany?

4. Inform the immigration office 

If you’re on a residence permit that is linked to your job in some way, like a Blue Card or work visa, you’ll need to inform the immigration office about your change in circumstances as soon as possible.

This should be done in writing, and in German, within two weeks of receiving your termination notice.

You should include all relevant personal information, such as date of birth, residence permit type, and nationality, as well as the date of your final day at work. As proof of the layoff, you should also enclose a copy of your termination agreement or a letter from your employer. 

People enter the immigration office

For foreigners who move to Germany and settle in Berlin, a visit to the Berliner Landesamt für Einwanderung (LEA) is ultimately unavoidable. Photo: picture alliance/dpa | Britta Pedersen

In most cases, the immigration office will give you between 3 and 12 months to look for a new job. If they give you a shorter period, be aware that you may be able to negotiate an extension later on if you are struggling to find work through no fault of your own.

Above all, stay positive. Though it may feel like one door has closed, another one is sure to open. This being Germany, you may just have to wade through a sea of paperwork to get there.

SHOW COMMENTS