The Mittelstand includes SMEs as well as larger family-owned businesses
Despite the ongoing geopolitical challenges of recent years, small and medium-sized enterprises (SMEs) generated approximately € 2.8 trillion in 2024, according to the recent available data. This accounted for 29 % of total turnover in Germany. More than 3.5 million companies in Germany are classified as SMEs under the European Commission’s definition. This represents over 99 % of all private-sector enterprises.
These are the factors that highlight the economic importance of SMEs
More than half of all employees in dependent employment continue to work in micro, small and medium-sized enterprises (just under 22 million out of approximately 36 million). The training of skilled workers also predominantly takes place in enterprises of these size categories (68%). However, the share of apprentices in micro and small enterprises has been declining for years, while the proportion in larger enterprises has been steadily increasing.
Only independent SMEs are considered part of the Mittelstand
In public perception, the Mittelstand is often equated with small and medium-sized enterprises. According to the definition of the IfM Bonn, it only includes companies in which the unity of ownership and management is ensured – regardless of their size. As a result, companies such as Bahlsen, Ottobock or Miele, with more than 250 employees, are also considered part of the Mittelstand if two natural persons or their family members hold at least 50% of the company shares and are actively involved in management. By contrast, SMEs that are dependent on another company, such as Wagner Pizza or Bübchen Bodycare GmbH, are not considered part of the Mittelstand.
As the qualitative characteristics of the Mittelstand (type of management, ownership structure and economic independence) are not taken into account in official statistics, IfM Bonn annually assesses the economic importance of the Mittelstand based on the European Commission’s definition of SMEs. In addition, the researchers periodically estimate the total number of family businesses. According to these estimates, in 2019 more than 90% of all companies in Germany were family-owned – and were also managed by families. At that time, family businesses generated more than one third of total turnover and employed over half of all employees subject to social security contributions.
