Demographic changes will challenge German SMEs

Subject

Challenges facing Germany's 'Mittelstand'.

Significance

The German term 'Mittelstand' (middle 'estate') embraces small and medium-sized enterprises (SMEs) with an annual turnover of below 50 million euros (57 million dollars). They operate largely in technically refined fields of production and commerce and represent a key component of Germany's economic success.

Impacts

• Prolonged austerity politics in Europe will contribute to slow growth and increase pressure on SMEs.
• SMEs are likely to support the ongoing TTIP negotiations to gain better access to the US market.
• Difficulties in finding successors will threaten the survival of many SMEs.