SME Promotion and the current situation of the German Mittelstand rfciz marburg 5/20121.

SME Promotion and the current situation of the German Mittelstand

rfciz marburg 5/2012 1

What is SME Promotion resp. Mittelstandspolitik?

Why did German Mittelstand came out of the crisis strengthened?


SME Promotion:Improvement of framework conditions for SMEs

last but not least because of their importance for employment


EU countries comprise historically a multitude of SME programmes


EU SME Promotion

• EU: 20 Mill SMEs, > 99% of all businesses• Small Enterprise Charter 2000• EU - SBA Small Business Act 2008• SME Performance Review• National Fact Sheets (Best Practices)• EU Small Business Portal• Integrale Part of Lissaboa Agenda


Under the Charter, Member States and the Commission took action to support small enterprises in ten key

policy areas:

• Education and training for entrepreneurship;• Cheaper and faster start-up;• Better legislation and regulation;• Availability of skills;• Improving online access;• Getting more out of the Single Market;• Taxation and financial matters;• Strengthening the technological capacity of small enterprises;• Making use of successful e-business models and developing top-

class small business support;• Developing stronger, more effective representation of small

enterprises’ interests at Union and national level.


EU SBA 2008 – 10 Bullets

1. Promotion of private entrepreneurship2. Second chance after insolvency

3. SME right of way4. SME sensitive national administrations

5. Increased SME participation in public tenders6. Improved access to finance and payment morale

7. Improved integration in the internal market8. Further qualification und innovation

9. Environmental protection as business opportunity10. Enhanced share in market growth


Core Innovation Programme SMEBMWi

• 2008 – 2013 • Threshold < 1000 employees, before < 500• Programme for marketorientated promotion

of technical/technological innovations • Objective: to promote the innovate power of

SMEs


•Increase research, development and innovation• Reduce financial risks of innovative projects•Transfer research results in marketable

products•Improve cooperation between SMEs and

research institutions•Increase SME research and development and

networking engagement•Improve SME research, development and

networking management.


Promotion Modules• Kooperationsprojekte (ZIM-KOOP)Gefördert

werden Kooperationsprojekte zwischen KMU und von KMU mit Forschungseinrichtungen.

• Einzelprojekte (ZIM-SOLO)Gefördert werden einzelbetriebliche FuE-Projekte von KMU.

• Netzwerkprojekte (ZIM-NEMO)Gefördert werden externe Management- und Organisationsleistungen für die Entwicklung marktorientierter Netzwerke innovativer KMU.


http://www.zim-bmwi.de/kooperationsprojekte

http://www.zim-bmwi.de/einzelprojekte

http://www.zim-bmwi.de/netzwerkprojekte

BMWi 9 SME bullets 1/2010


rfciz marburg 5/2012

1. Enhanced SME financing

2. Credit Mediator

3. New risk capital for high tech exploration

4. Promote business start ups and business heredity

5. Strengthening of SME innovation capacity

6. Secure skilled labour

7. Unlock foreign markets

8. SME tax benefits

9. Enhanced SME dialogue

12

German Mittelstand

Strengthened out of the crisis?


Mittelstand - SME ?

S: < 10 employees, < turnover 1 Million Euro

M: 10 to 500 employees, max 50 Millionen Euro turnover


• Roughly 3,6 Millionen German SMEs• > 99% of all taxpaying companies• 16 Millionen employees under social securiry• 65,9 % of all employees under social security• 38 % of total company turnover• 47 % of net value added• 83,0 % of all trainees


Owners equity:

SME: Owners equity 15 – 20 % of total assets

Large E: Owners equity 30 - 35 % of total assets


German SMEs and Foreign Markets• Export 2010: 26% (rising 2012 30%?)• 96% into Eurozone• International engagement in order to gain

- new markets- new product sources- new knowledge- skilled labour- Outsourcing not very relevant

(German export quote 70%, > 1 Trillion €, almost 10% of world-trade59% to EU, 40% to Eurozone)


Crisis expectations 2008

- Insolvency spree- Takeovers through risk capital

- Credit crisis- Lay off sprees

- Resource scrambles inside companies


Four years after the crisis 2012

German Mittelstand largely robust and successful


- Fewer companies then expected bankrupt and taken over

- Maschinery, plant and car manufacturing, chemical and

pharmaceutical industries strengethened


Key Causes of the Success 1

•Research & Innovation continued by and large during crisis•German maschinery up to date = energy & raw material saving•Orders from Asia were back earlier than expected (China!)



• Permanent staff largely kept (further training and short-time work)

• Financial reserves build• Companies are proffessionally structured• Cost flexibility through corporatist agreements

(state, unions, employers)



• Highly motivated and skilled staff• Use of temporary employment• Relocating and offshoring• Early internationalisation of German

companies (on location in Asia)


German SME Challenges

• Lack of skilled labour (demography, vocational training)

• Buerocracy and overregulation (from communities to EU)

• Credit access• Refinancing at the capital markets at

companies own risk• EURO-Crisis


SME Promotion and the current situation of the German Mittelstand rfciz marburg 5/20121.

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