Social and ecological values are becoming increasingly important for startups
16. November 2023 - Berlin is diverse, cosmopolitan, multicultural and rich in tradition. The innovative start-up ecosystem of the Spree metropolis is an exciting counterbalance to the historical uniqueness of the city. It is for good reason that Berlin is also known as the “Startup capital.” As part of the Startup Agenda 2022-2026, the Institute for Strategy Development (IFSE) has now produced and published an up to date report on behalf of the Senate Department for Economics, Energy and Public Enterprises, which takes an in-depth look at two of the five fields of action of the Agenda. The report provides data, facts and recommendations relating to diversity and impact in Berlin’s startup scene.
The Berlin Startup Agenda 2022-2026 aims to strengthen the city’s startup ecosystem and position Berlin as a sustainable business location. The IFSE report focuses in particular on the two fields of action diversity and impact. “Diversity and impact are of great importance in the Berlin start-up scene. They are the basis for sustainable growth, ethical entrepreneurship and social responsibility, which are more in demand today than ever before,” says Hergen Wöbken from IFSE, explaining the reasons for the selection. The report presents the positive effects of inclusion and diversity, triggered by integrative measures, as well as the relevance of promoting both fields. The basis for the evaluated results is numerous data from and intensive exchange with companies, organisations and stakeholders from the startup sector.
Hergen Wöbken demonstrates the constant growth and role model function of the entire Berlin startup ecosystem using a few well-known examples: “In the Berlin startup scene, there are numerous personalities, startups and institutions that are passionately committed to greater diversity and social impact. A well-known example of this is the startup Einhorn, which is known for its sustainable products and innovative working models. Einhorn attaches great importance to diversity as well as social and ecological sustainability. The company practices the concept of steward-ownership, which means that it cannot be sold or inherited and “belongs to itself”. Einhorn is part of the Purpose movement, which aims to shape companies in such a way that, in addition to economic success, they also take social and ecological values into account and contribute to solving social challenges.” But also Plan A, a pioneer for impact and diversity, Founderland, founded to create visibility, investor contacts and networking for BPoC (Black & People of Color) founders, or Inklupreneur, which works with startups to integrate people with disabilities into the labour market, are representative of numerous Berlin companies that have a positive social and ecological impact on the city’s economy. “The work of these start-ups shows that diversity, inclusion and sustainability are not only morally important, but can also strengthen the innovative power and success of companies. They serve as a source of inspiration and a role model for others,” says Hergen Wöbken.
The finding that a large number of different startups in Berlin are committed to diversity and impact is one of the most important findings of the report. We must continue to promote and support them and thus increase their visibility. The economic effect should not be underestimated either. In 2022, there were almost 7,000 jobs in this sector.
A positive development can also be observed with regard to the proportion of women in start-ups. In general, however, women must continue to be empowered and the principle of anti-discrimination must be considered on a larger scale. In conclusion, the diversity of Berlin’s startups makes it difficult for the authors of the report to identify a common denominator. But one thing is certain: Numerous companies based in the city actively contribute to solving social problems and initiate lasting changes. A development with remarkable potential for Berlin’s economy.
The Berlin Senate Department for Economics, Energy and Public Enterprises, the Berlin Chamber of Industry and Commerce, the Berlin-Brandenburg business associations, Investitionsbank Berlin, Berlin Partner, the German Start-ups Association, bitkom, the Berlin Chamber of Skilled Crafts, universities, colleges and more than 100 start-ups themselves were responsible for shaping the Berlin Start-up Agenda. The five action areas “Berlin - City of Impact Start-ups”, “Berlin - City of Talent”, “Berlin - City of Enabling”, “Berlin - City of Diversity” and “Berlin - City of Cooperation” are intended to provide new impetus and promote diversity, sustainability and cooperation.