How does the coronavirus pandemic affect the Mittelstand in Germany? What economic policy support measures are appropriate? The IfM Bonn regularly publishes analyses and recommendations in this dossier.
IfM Bonn News
Entrepreneurship and Capitalism
What best helps Mittelstand businesses after the pandemic
18.06.2021 For more than a year now, the Corona pandemic has posed major challenges for the MIttelstand in Germany. Companies have been affected by the consequences of the pandemic in different ways: A large number of enterprises were able to continue operating almost unhindered by adhering to a hygiene concept. Some firms in particular sectors, such as the online or food trade as well as the information and communication technology sector, even profited from the crisis. However, the economic consequences for Mittelstand businesses were serious, especially in the sectors culture, gastronomy, tourism and retail because firms had to close down repeatedly or for a longer period of time due to the pandemic situation.
For economic policy, the main task was to limit the extent of the economic and social damage caused by the pandemic and to mitigate its acute impact on the self-employed and enterprises during the past months. The focus of Mittelstand policy was therefore primarily aimed at ensuring the survival of the Mittelstand economy. Accordingly, supporting programs were repeatedly adapted at short-term and new programmes were launched as needed. This policy response was basically correct – as well as the softening of regulatory principles in favour of broad-based support for the Mittelstand despite possible deadweight effects.
Figure of the months
In 2013, every
academic in German universities who had a start-up idea in 2013 also implemented it by 2020.
Policy Brief "Entrepreneurship in Focus"
Entrepreneurship and knowledge as drivers of regional development in East Germany
East German regions, which had a relatively high density of private enterprises and a high qualification level of the workforce at the end of the GDR era, coped relatively well within the abrupt transition to a market economy more than 30 years ago.