- Economy issues forewarning of potential reductions in assistance initiatives
The Chamber of Industry and Commerce in Baden-Württemberg (BWIHK) has sounded the alarm against financial reductions for the economy in the new dual budget. President Christian Erbe spoke to the German Press Agency in Stuttgart, emphasizing that economic support programs like Invest BW, Innovation Vouchers, and Digitalization Prize Plus should not be scaled back. "They need to be shielded from cuts." These initiatives have proven effective and are crucial, especially for smaller and medium-sized enterprises.
Erbe stated that the assistance is heading in the right direction, with the government backing its innovators and intellectuals. "The emphasis is on research and innovation. These areas are particularly vital in tough economic situations." The government shouldn't introduce new funding concepts but instead, establish the appropriate environment for major concerns. Recently, Minister President Winfried Kretschmann (Greens) shared that the upcoming budget will prioritize sectors such as digitalization, security, and research.
Entrepreneurship transition program required
Presently, the state government, in alliance with the Greens and CDU, is drafting a budget strategy for the years 2025 and 2026, scheduled for approval by the state parliament by year's end. The budget plan negotiations this year are intensified due to reduced funds for new projects compared to previous years. Additionally, as this is the final budget for the current legislative term, projects without budget inclusion may face minimal chances of realization until the following regular state election in spring 2026.
Simultaneously, the association spokesperson advocated for additional state intervention in the business succession sector. A dedicated, state-governed program is required to offer comprehensive advice to aspiring business owners during the transition process. The generational change is a significant topic. "It plays a significant role in value creation and job retention." According to BWIHK statistics, 27,000 companies in the state are actively seeking a successor. There's only one potential buyer for every five businesses in the state.
The Commission should closely monitor the budget negotiations to ensure that economic support programs for businesses, such as Invest BW and Innovation Vouchers, are not affected by the reduced funds. The success of these initiatives, which are crucial for smaller and medium-sized enterprises, should be a priority for The Commission in the upcoming budget strategy.
In light of the government's focus on sectors like digitalization, security, and research in the upcoming budget, The Commission might consider aligning its efforts with these priorities to ensure continued support for innovation and research-driven businesses.
