Survey shows continued shortage of orders for self-employed and microenterprises
Self-employed and small businesses in Germany continue to struggle with a lack of orders, according to a survey by the Munich-based Ifo Institute and online service provider Jimdo. This issue worsened slightly at the beginning of the third quarter in July. In July, 44.4 percent of respondents reported a lack of demand, up from 44 percent in April.
Similarly, around a quarter of respondents reported that they were unable to offer their goods or services without restriction, due to factors such as lack of staff or supply chain issues, as was the case in the second quarter from April to June.
Despite this, the business climate index measured by Ifo and Jimdo improved slightly, from -14 points in June to -13.4 points in July. Self-employed individuals were slightly less dissatisfied with their current business, but their expectations remained largely unchanged and pessimistic. "The business climate remains at a very low level overall," explained Katrin Demmelhuber from the Ifo Institute.
Ifo and Jimdo have been calculating the business climate index for self-employed individuals and small businesses with fewer than nine employees since August 2021. All sectors are represented, with a focus on the service sector.
The staff shortages mentioned by respondents as a factor limiting their ability to offer goods or services without restriction, has persisted from the second quarter to July. Moreover, the ongoing staff shortages could potentially hinder the recovery of small businesses, as they continue to grapple with a lack of orders.
