SMEs and SME policy in GermanyDr. Armgard Maria WipplerHead of Section „General issues on SME PolicyFederal Ministry of Economic Affairs and Energy

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German Mittelstand – an international brand

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SME = Mittelstand?

Quantitative criteria

< 500 employees

< 50 Mio. € turnover

< 250 employees

< 50 Mio. € turnover or

< 43 Mio. € total assets

SME Mittelstand

“Mindset”

combination of ownership and liability

responsibility• for the success of the company • for staff• for the region

long-term strategy

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SMEs are the backbone of the German economy

59,4 %

56,5 %

99,6

%

Nearly all enterprises are SMEs 3.7 million SMEs in Germany, a few thousand large ones 99,6 % of all enterprises

SME contribute strongly to economic activity

account for 56,5 % in total net added value

SME are a major driver of employment More than 15 million employees Almost 60 % of all employees 84 % of all trainees

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What makes the German Mittelstand so successful?

Sector

Internationalization

Size

Innovation

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Success of German SMEsWhere does the state come in? Non-interventionist / competition policy /

regulatory framework

Availability of resources

Interplay between economic policy, self-governing bodies within business and business associations

Internal success factors

• highly qualified workforce

• dual vocational training system

• financial means to invest and grow

• availability of debt and equity capital via commercial sector

• public funding• high degree of

innovation

• R&D infrastructure• Innovation support

schemes• export orientation /

internationalization• foreign trade and

investment promotion

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Within the dual vocational training systempractical and theoretical training are combined

in-company curriculum and school-based curriculum are coordinated

training content and examinations follow nationwide standards and are continually updated

chambers ensure a high level of quality

Dual vocational training system breeds skilled professionals with needs-oriented qualifications

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Success of German SMEsWhere does the state come in? Non-interventionist / competition policy /

regulatory framework

Availability of resources

Interplay between economic policy, self-governing bodies within business and business associations

Internal success factors

• highly qualified workforce

• dual vocational training system

• financial means to invest and grow

• availability of debt and equity capital via commercial sector

• public funding• high degree of

innovation

• R&D infrastructure• Innovation support

schemes• export orientation /

internationalization• foreign trade and

investment promotion

Mittelstand spirit: act and grow on its own initiative

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Yes No0

50

100

17

83

Mittelstand relies on established structures

% of companies that received assistance within the last 3 years

No need

Other reasons

0 50 100

68

32

Reasons for not using assistance

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Success of German SMEsWhere does the state come in? Non-interventionist / competition policy /

regulatory framework

Availability of resources

Interplay between economic policy, self-governing bodies within business and business associations

Internal success factors

• highly qualified workforce

• dual vocational training system

• financial means to invest and grow

• availability of debt and equity capital via commercial sector

• public funding• high degree of

innovation

• R&D infrastructure• Innovation support

schemes• export orientation /

internationalization• foreign trade and

investment promotion

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German Foreign Trade and Export Promotion

information on foreign trade and investments (GTAI)

bilateral chambers of commerce

investment guarantees

multilateral policies for open markets and fair trade

export credit guarantees

foreign trade-fair program

export initiatives

market development program

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Success of German SMEsWhere does the state come in? Non-interventionist / competition policy /

regulatory framework

Availability of resources

Interplay between economic policy, self-governing bodies within business and business associations

Internal success factors

• highly qualified workforce

• dual vocational training system

• financial means to invest and grow

• availability of debt and equity capital via commercial sector

• public funding• high degree of

innovation

• R&D infrastructure• Innovation support

schemes• export orientation /

internationalization• foreign trade and

investment promotion

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SME policy: actors at various levels

Government Private sector

political framework conditions

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Thank you very much for your attention!

Khop Khun Maak Kha!

For further questions: armgard.wippler@bmwi.bund.de