Why Germany has too few female founders

The roots of Germany's gender gap in the startup sector lie in early socialization and life experiences. Young women lack visible role models in entrepreneurship, and the country's education system often fails to challenge existing stereotypes. Another major hurdle is the ongoing difficulty of combining family responsibilities with running a business – an area where structural barriers remain firmly in place. These are among the key findings of the study commissioned by the Bertelsmann Stiftung, for which the German Startup Association surveyed over 1,800 startup founders and 1,000 students across Germany.

"Germany can't afford to leave women's potential untapped. They are the country's largest silent reserve," said Verena Pausder, chair of the board  of the German Startup Association. "In a time of economic stagnation, we need everyone who can help move the economy forward. Startups are essential to reinvigorating innovation and momentum – and more female founders mean more innovation for Germany."

Traditional gender roles shape young people's career preferences, setting the course for the gender gap in the startup ecosystem as early as adolescence and higher education. Nearly 67% of male startup founders in Germany decided to pursue entrepreneurship as teenagers or while at university. Among women, that share drops to just 43%.

Already during their studies, women tend to prioritize different career goals than men. Some 60% of female students say job security is a key concern, compared with just 32% of their male peers. These numbers reflect how social expectations shape men's and women's attitudes toward risk in markedly different ways, often steering women away from entrepreneurship early on.

Women's perspective on entrepreneurship tends to shift with professional experience. A third of female founders decide to launch a startup within the first few years of their careers, while another quarter make that decision later down the line.

"What we see is that women aren’t lacking interest in entrepreneurship – they're held back by conditions that only start to encourage self-employment later in life," says Jennifer Eschweiler, entrepreneurship expert at the Bertelsmann Stiftung. "Women are more likely to draw entrepreneurial motivation from their work experience, and many are driven by a desire to make a broader social impact."

The study clearly shows that a cultural shift is essential. Female founders are far more likely than their male counterparts to view the gender gap as a serious issue – 87% of women see it as a challenge, compared with just half of men. Interestingly, when men work in mixed-gender founding teams, awareness increases: 64% then recognize the gap as a problem. This underscores the importance of breaking open male-dominated networks and making them more inclusive.

Work-life balance is another key factor closely tied to this cultural transformation. The decision to start a family often coincides with the launch of a business, and caregiving responsibilities still fall disproportionately to women. Some 81% of female founders and 60% of male founders cite balancing family and entrepreneurship as the most crucial lever for increasing the number of women-led startups.

Investors are increasingly recognizing the potential of women-led startups. Since 2017, the number of venture capital deals involving at least one female founder has nearly doubled, and the volume of capital invested in these startups has quadrupled. Still, 91% of venture funding continues to flow to all-male founding teams. This highlights two things: the urgent need for targeted support measures, and the untapped potential that women founders represent for the next wave of growth.

"Paving the way for female founders has to be a collective effort," says Julia Scheerer, economic policy expert at the Bertelsmann Stiftung.  "A lack of role models and persistent stereotypes are holding women back. It's up to policymakers, investors and the startup ecosystem as a whole to create better conditions. One thing is certain: more female founders mean more innovation – and more innovation is exactly what's needed to secure a successful future."