Can German SMEs be a blueprint for other countries?

.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.

.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.

.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

5.9

5.5

5.1 5.1

4.4

3.9

3.5 3.4

3.1 3.1

Germany

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