Challenges for SMEs
In 2025, German SMEs will face a number of far-reaching structural challenges – with implications for growth, competitiveness and innovative strength.
Over 99 per cent of all companies in Germany are small and medium-sized enterprises (SMEs). They secure more than half of all jobs and around 70 per cent of apprenticeships. However, it is precisely this mainstay of our economy that is coming under increasing pressure.
Five key challenges currently characterise the reality of SMEs:
- the shortage of skilled labour remains one of the biggest brakes on growth – particularly in technical professions, the skilled trades, care and IT.
- bureaucracy and regulation are a particular burden on smaller companies that are unable to build up their own compliance resources.
- investments are being postponed due to inflation, high interest rates and uncertainty – especially in the area of digitalisation and transformation
- digital transformation is progressing too slowly or selectively in many places due to a lack of expertise, time or strategic approaches
- volatile commodity prices and global economic risks are making long-term planning more difficult and increasing cost pressure.
These challenges do not act in isolation, but reinforce each other. Many companies are already responding to these developments with creative approaches and entrepreneurial resilience – yet it is clear that without targeted and coordinated support from politicians, banks, associations and networks, it will be difficult to ensure the long-term competitiveness of German SMEs.
This document succinctly summarises the current situation – and is intended as an impetus for an honest, solution-oriented debate.