BDI Fact Check | Mittelstand & Family Businesses The German Mittelstand
Corporate character and economic significance
Can German SMEs be a blueprint for other countries?
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An attractive and reliable business and regulatory environment as well as qualified specialists are key prerequisites for a successful SME sector. These conditions can be met in several countries. What makes German Mittelstand companies special has grown historically.
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The special character of the German Mittelstand has developed thanks to the many family businesses. Their entrepreneurial activities rely on independence and a high level of social commitment in their local communities. Economic activities are sustainable as they have the next generation in the family business in mind.
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The average number of employees is relatively higher in the German SME sector than in other EU countries as the relatively larger industrial (family-owned) companies dominate the sector. Almost half of the approximately 2700 hidden champions worldwide are based in Germany.
Average number of employees per SME by EU country Source: IfM Bonn (2018a)
7.6
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