The extant literature has generally measured and analyzed the Mittelstand as the equivalent of SMEs. Such an approach is erroneous because, while firm size is one important characteristic of the Mittelstand, there are a number of other salient characteristics which have been ignored or overlooked when trying to measure and analyse the impact of the Mittelstand.
In their working paper "In the eye of the beholder? Why we need to differentiate between SMEs and Mittelstand enterprises", Dr André Pahnke, Prof Dr Friederike Welter (IfM Bonn/University of Siegen) and Prof Dr David B. Audretsch (Indiana University/USA) suggest that the SME data should only be used in an auxiliary way. They also argue that the criterion "unity of ownership and management" characterises the Mittelstand much better.
