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Startups

Every fifth founder is a lateral entrant

The startup industry is attracting career changers. According to a recent analysis, 18% of the founders have no prior technical knowledge of the field in which they work.

20 Dec. 2017
Source: KfW

As the startup monitor of the Reconstruction Loan Corporation (Kreditanstalt für Wiederaufbau, KfW ) reports, around 672,000 people in Germany became self-employed in 2016. 29% of these were academics and 40% had completed vocational training.

"The majority of founders are skeptical when it comes to qualifications," states the KfW report. Only 24% rate their education as a good preparation for self-employment. The proportion of founders who owe their business idea to their training or studies is also rather low at 28%.

According to the analysis, almost one in five are even absolute newcomers without the slightest experience in the chosen area. These founders tend to succeed in industries with low formal entry barriers, such as retail. Lateral entry usually begins as a sideline activity.

Leipzig-based Innovailably proves that a startup can even use this topic as its business idea. The young company wants to improve career changers' chances of succeeding. Companies can place challenging tasks on a platform; after registering and recording a profile, the users then submit solution concepts. The approach is based on the concept that ideas and practical skills rather than CVs and formal criteria should be decisive for professional success.