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Nachrichten, Termine, Experten
Nachrichten, Termine, Experten
How can the competitiveness of Mittelstand enterprises be strengthened in the current situation? What makes self-employment attractive? Representatives from research, business, and politics discussed possible courses of action for Mittelstand businesses facing the current challenges at the Mittelstand Round Table in Berlin.
"The Mittelstand is currently facing a wide range of challenges – from skill shortages and bureaucratic burdens to geopolitical change. But we also know that the Mittelstand businesses are highly adaptable and repeatedly develop innovative solutions. Necessary are appropriate framework conditions that enable the enterprises to adjust fast to new requirements,” said Prof. Dr. Dr. h.c. Friederike Welter (IfM Bonn/University of Siegen) in her opening remarks at today’s Round Table on SMEs in Berlin.
Around 30 representatives from research institutions, business associations, the KfW banking group, the Federal Ministry for Economic Affairs and Energy, and the Ministry of Economic Affairs, Industry, Climate Action and Energy of the German state of North Rhine-Westphalia met in Berlin to discuss how Germany can once again become a more attractive business location.
Geopolitical crises are not the only factor weighing on competitiveness.
Dr Jennifer Abel-Koch (KfW) sees significant differences among the Mittelstand businesses in their assessment of international competitiveness. For an increasing share of companies, confidence in their ability to maintain their position in global competition is declining due to geopolitical crises, US tariff policy and growing Chinese competition. Mittelstand businesses that continuously invest in research and development and generate process innovations – which promise efficiency gains in light of rising labour and energy costs – have a much more positive outlook for the future. Nevertheless, from the perspective of the Mittelstand, bureaucratic burdens, taxation and energy costs remain the most significant risk factors for Germany as a business location.
Dr Mathias Mainz (IHK NRW) illustrated in his presentation how high energy prices have affected companies’ willingness to invest and their competitiveness: "Around 41% of companies believe that their competitiveness is suffering as a result. Many firms are having to postpone investments in their core processes or in research and innovation." He argued also that political trade-offs should be continuously reassessed. From the perspective of Freya Onneken and Johannes Schindler (both BDI), the German federal government could also do more in light of current developments in energy prices and security of supply. For example, they see merit in making the reduction of electricity tax for the manufacturing sector permanent.
Dr Constantin Terton (ZDH) called for a clearer prioritisation in economic policy in order to strengthen Germany as a business location: "A constantly growing number of individual proposals on what should be done are causing considerable irritation and uncertainty among businesses and employees. In particular, Mittelstand urgently need a comprehensive reform concept agreed upon by policymakers. This must include the implementation of the promised relief measures, the consistent use of special debt instruments for additional investment, a reform agenda for the social security systems, as well as an honest review of responsibilities within an increasingly bloated public sector."
Dr Michael Rothgang and Dr Jochen Dehio (both RWI Essen) used the example of the circular economy to illustrate how regulation can act as an obstacle for the Mittelstand and can also serve as a basis for the development of new markets for the Mittelstand sector. They concluded: "When designing the regulatory framework, a consistent cost–benefit assessment is necessary. Specific regulations must be tested in practice and adapted to changing circumstances."
What promotes self-employment
The attractiveness of entrepreneurial self-employment is considered a key indicator of a country’s appeal as a business location. In her presentation, Dr Natalia Gorynia-Pfeffer (RKW Competence Centre) outlined how the topic of entrepreneurship is currently perceived in society, which factors influence its attractiveness, and the structural challenges faced by prospective founders.
" A majority of those who responded still believe that those who succeed in setting up a new business are highly regarded and respected. But while social appreciation remains high, many of the conditions affecting start-ups have deteriorated since 2022,” the speaker noted.
One way to improve these framework conditions was presented by Dr Vinzenz Peters (IfM Bonn) in his presentation "Ways of supporting self-employed women in crafts during pregnancy and maternity". A survey conducted last year among self-employed craftswomen in North Rhine-Westphalia showed that 89% continued working during pregnancy, often under conditions that, in an employment relationship, would have required protective measures or work restrictions. Only just over one third reduced their workload by taking on fewer orders or shortening working hours, while most only paused their activity shortly before giving birth – and resumed it soon afterwards. The necessary operational adjustments, as well as short-term absences, led to significant losses in turnover and income. Based on this, the IfM Bonn and the West German Chamber of Skilled Crafts have developed a modular model designed to mitigate both the financial and operational impacts of pregnancy and childbirth.
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