SME worries - a smart approach to bureaucracy, raw material prices and skills shortages
19.11.2024
The Gesellschaft für innovative Marktforschung (GIM) has taken a closer look at Germany's economic backbone: the SME sector. How is the situation? Mixed, but cautiously optimistic. The study “SME Challenges: Challenges and Strategies in SMEs” highlights the biggest challenges and potentials for small and medium-sized enterprises (SMEs) in Germany.
Unsurprisingly, bureaucracy, rising raw material prices and the shortage of skilled workers are the most pressing obstacles to growth. The study also shows that regulatory and energy policy burdens in particular severely restrict the room for manoeuvre of many SMEs - which is why important topics such as digitalization and sustainability have so far only been insufficiently addressed.
“SMEs are losing agility because they are sometimes treated and burdened like corporations in terms of regulation, especially by politicians and large corporations - and at the same time have to remain economically dynamic in an increasingly complex market environment,” says Dr. Stephan Telschow, Managing Director of GIM. “They need precise, practical perspectives and solutions for their specific challenges - in the medium to long term and not just on a quarterly basis.”
As a medium-sized company, GIM is also familiar with this area of conflict first-hand. “We know how important tried-and-tested, data-based solutions are in order to compete successfully. We support companies and associations in gaining these insights - and turning them into concrete strategies for success.”
Three key findings of the study:
1. bureaucratic burdens as a brake on growth - 82% of SMEs cite bureaucracy as the biggest obstacle. The large number and complexity of regulatory requirements tie up valuable resources and impair the core business.
2. commodity prices and economic uncertainty - Manufacturing and construction-related companies in particular suffer from volatile commodity markets, which affects profitability and planning security.
3. acute shortage of skilled workers - around half of SMEs see themselves as poorly positioned in the area of recruiting skilled workers, which is increasingly being perceived as a brake on growth in sectors such as construction and services.
Almost 450 SME managers took part in the study - from construction and ancillary trades to knowledge-based and personal services and manufacturing.
Not all SMEs are the same
At the same time, there are clear differences between SME types: While traditional family businesses from the trades and production sectors are cautious about their prospects, strongly growth-oriented companies that perceive themselves as modern are more optimistic about the future. The mood among self-actualizers - self-employed people who have turned their personal passions into a business - remains poor.
Want to find out more? Click here for the free short version of the study.