Entrepreneurs in Germany are increasingly considering closing their businesses
Entrepreneurs and businesses in Germany are considering business closures more frequently due to the lack of successors. According to the German Industry and Commerce Chamber (DIHK) in Berlin, this is currently the case for around 28 percent of businesses. In the previous year, it was 25 percent. This could lead to approximately 250,000 business closures according to DIHK's calculations.
For the report on business succession, the DIHK evaluated a total of 48,000 consulting interviews. According to the experts and experts of the Chambers of Industry and Commerce (IHK), entrepreneurs and businesses want to close their businesses in 96 percent of cases due to failed succession searches. Other reasons include a lack of qualified specialists and uncertainty about the commercial future.
More CEOs and CEOs have consulted at the Chambers of Commerce than ever before in the past year, according to the DIHK. The number rose significantly by 22 percent to 8276 consultations. In the same period, 2760 interested parties registered at the IHK. The number of entrepreneurs and businesses seeking a succession solution is therefore three times higher than the number of interested parties. The situation is particularly challenging in the hospitality industry, retail, and transportation sector.
This development could have "consequences for the structure of the SME sector" according to DIHK's assessment. If companies disappear from the industry and the knowledge is no longer available, it could lead to cracks in the entire supplier structure. "We must urgently adapt and make the step into self-employment easier - be it succession or founding," said DIHK President Peter Adrian.
The entrepreneur, recognizing the lack of a successor, is contemplating the closure of their business in Germany, a trend that has increased from 25% to 28% as per DIHK's data. Despite the significant increase in CEO consultations at the Chambers of Commerce, none of these seem to have found a feasible succession solution, leading to concerns about the future of the SME sector and potential cracks in the supplier structure.
