Production and labour costs are placing an increasing burden on SMEs
Willingness to invest among small and medium-sized enterprises (SMEs) is picking up again. Between July and September, the share of SMEs in Germany reporting an increase in investment exceeded, for the first time, the share reporting a decline. Despite this positive development, investment activity among SMEs in the euro area remains higher than in Germany. By contrast, turnover and profits followed a downward trend in both Germany and the euro area.
Researchers at IfM Bonn use data from the Europe-wide Survey on the Access to Finance of Enterprises (SAFE), which is commissioned regularly by the European Commission and the European Central Bank.
Skill shortages and customer acquisition remain the biggest challenges
Although skill shortages remain the most frequently cited challenge among SMEs in both Germany and Europe, rising production and labour costs are becoming an increasingly pressing concern. In Germany, customer acquisition is also proving increasingly difficult. By contrast, access to finance and competition continue to be of relatively little concern to German SMEs.
