National Geography describes Germany as “Europe’s strongest and industrial power.Germany has achieved a lot in the fields of science and technology and this has led to the research and development forming an integral part of their economy.Their works have been recognized by countries all over the world.It was named as the second most innovative country in world in the Bloomberg Innovation Index, 2015. In order to encourage people to start their businesses in Germany, there has been a lot of incentives and support provided by the government. In order to achieve the vision of 2020 ,the investments made by the government in improving the infrastructure to about 167 billion euros.It is due to these investments that Germany is renowned all over the world for its infrastructure. In order to achieve the vision of 2020 , i.e., one million electric vehicles on the road by 2020, the government has initiated the National Electromobility Development Plan. The German Federal Government has invested in the region of EUR 1.5 billion in electric mobility development. Since 2007 the investment in the automotive industry has been around 17 billion euros into development and commercialization activities. They have also implemented plans like INDUSTRIE 4.0 . The primary objective is to secure and develop Germany’s top position in industrial manufacturing .It aims to promote digitalization and providing a reliable network to the economy which would enhance the business in the country. Germany is known as the leading supplier of industrial equipment. It provides numerous opportunities for innovative business models and services which can benefit the startups, small and medium-sized enterprises . The development of digitization in the economy is creating new opportunities for businesses. Research and development is considered to be among the most important areas for the development of the german economy. About 3% of the country’s GDP is spent on Research and development activites. R projects can count on numerous forms of financial public support. There are many programs allocating R grants, interest-reduced loans and special partnership programs. Financing is provided by the European Union (EU), the German government, and the individual German federal states. The various incentives like:• The EU’s Horizon 2020 program offers financial support to research and innovation projects at the European level and will run until the end of 2020. Support is allocated in the form of grants covering up to 100 percent of eligible project expenditures.• All research programs financed by the German federal government have been concentrated within the High-Tech Strategy. The High-Tech Strategy defines six “future priorities” with a high dependency on ongoing high-tech research and development: digital economy and society; sustainable economy and energy; innovative workplace; healthy living; intelligent mobility; and civil security. Each area consists of a number of different R&D programs. • The Central Innovation Program for SMEs (ZIM) makes provision for individual as well as for cooperation projects. The Federal Ministry for Economic Affairs and Energy allocates more than EUR 500 million to the ZIM program each year.The Government also provides various grants like the GRW Grant Scheme It is a national incentives program that steers the distribution of direct subsidies for different investment projects across Germany in specified areas like job creation and promotion regional economic development.The government has also invested in the education sector of the country.Germany’s education department has investedto about 5 billion euros over the period from 2016-2021. This can improve the quality of the workforce in Germany which could act as a driver to effectiveness of the functioning of the company.Germany’s Federal Employment Agency and the German states offer a range of labor-related incentives programs designed to fit the different company needs when building a workforce. Labor-related incentives play a significant role in reducing the operational costs incurred by new businesses. These incentives are aimed towards startups ,small scale and medium scale enterprises which would provide support to them by reducing the costs incurred by the company.These incentives are ususally provided in the form of Grants and subsidies.