Start-ups — drivers of economic growth?

THE German Embassy Riyadh has relaunched its once well-known series of presentations and discussions “Forum at the Residence” recently with a presentation about the role of start-ups in modern economy. This forum is intended to be the first in a series of discussion and presentation events that are supposed to take place in the German Ambassador’s residence in the coming months and will tackle important subjects with a link to the Kingdom and Germany. The speaker, Johann Heitzmann, is a former top manager in German aviation industries (Dornier, EADS-Airbus, Grob Aircrafts), and president of his own company, HeiTech Consulting, since 2008. He is also Honorary Consul of the Republic of Korea in Germany and additionally bavAIRia chairman of the Board and cluster speaker for aerospace and high-tech industry of the Bavarian Government. The German economy is dominated by SME’s which create 83% of German GDP, and are responsible for an even higher share in jobs. So today, startups are essential to generate innovation and keep on track with other technological leaders. In the Kingdom, the growth of the SME sector is a vital part of Vision 2030 and NTP. In order to develop a performing SME sector, start-ups have an important role to play as they are often more flexible and more open to innovations. In his opening speech, Ambassador Dieter W. Haller stressed the importance of the sector: “Start-ups have become an important part of the German economic landscape, creating more than 80.000 jobs in the last years. We would like to fully share the German experience in this field with our Saudi friends, given the impressive dynamics of Saudi entrepreneurs of both genders.” Heitzmann indicated in his speech that “Start-ups are a job creation and business creation machines, and it needs high motivated and engaged entrepreneurs.“ He added: “Industrialization of start-ups contribute to the success and help to avoid failures done in the past. Incubation centers are a ‘must” to achieve a climate for entrepreneurs and for networking.” Heitzmann’s speech was followed by an open discussion with the selected guests, composed of young Saudi entrepreneurs (ladies and gentlemen), experienced Saudi and German entrepreneurs, as well as representatives from the financial sector and others. — SG