Impact of Government Involvement on Entrepreneurial Growth in Germany


  • Daly Wolburg University of Freiburg
  • Kurt Kaeding Erizal University of Freiburg
  • Chan Khuong Leiby University of Freiburg



Entrepreneurial growth is essential to any county and spurs job creation, tax base and drives innovation. Thus, the study sought to examine the impact of government involvement on entrepreneurial growth in Germany. The study adopted the descriptive research design. The target population included the SMEs based in Berlin. The motive for having the SMEs in Berlin was because it is the capital and most populous city of Germany. The study purposively picked 276 SMEs. The key respondents included the SME owners. The analysis of the data was done using descriptive and inferential statistics. The study findings indicated that government involvement has an impact on entrepreneurial growth. The government is involved in businesses mainly through taxes. The government's rules and restrictions that business units follow in their business activities influence their development. The study concluded that there is a need to develop organizations that lead to an environment suitable for entrepreneurs. It is essential to secure intellectual and various other property rights, boost the business environment, decrease regulation problems and develop a culture of another opportunity for entrepreneurs who do not perform well. The government takes a keen interest in training and advising people in business about business management strategies and better ways of producing goods and services. The study recommended that government should regulate the taxation in a particular country so that they may attract more entrepreneurs to start their businesses. Entrepreneurs require even more information on specific areas of taxpaying and education must pay more attention to these areas. The entrepreneurs must adhere to the rules and regulations put in place by the government.

Keywords: Government Involvement, Entrepreneurial Growth, Germany

Author Biographies

Daly Wolburg, University of Freiburg

PhD student, University of Freiburg

Kurt Kaeding Erizal, University of Freiburg

Lecturer, University of Freiburg

Chan Khuong Leiby, University of Freiburg

Lecturer, University of Freiburg


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How to Cite

Wolburg, D., Erizal, K. K., & Leiby, C. K. (2022). Impact of Government Involvement on Entrepreneurial Growth in Germany. Journal of Entrepreneurship & Project Management, 6(2), 33–42.