One issue is the way taxes work in Germany that disincentives entering the middle rungs of a career ladder. Like if you’re a software engineer and want to become an engineering manager, you might end up earning less after tax as a manager than you did as an engineer as your salary increase puts you in a new tax bracket.

Otherwise Germanys economy is optimized to support medium to large German companies with export businesses. Little attention has been given to support new business ventures, so for young people becoming an entrepreneur makes little sense when you can earn more and have less stress with a normal job.

full disclosure: this is based on personal experience and observation as a Brit that worked in Germany for a while and ended up in Switzerland