IfM Bonn News

Among the measures that the German government would like to implement in the near future with a view to boosting economic growth is the reduction of bureaucratic burdens.

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Our Society is currently facing big challenges like demographic change and coping with climate change.

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The water industry in Germany is facing increasing challenges due to climate change and resulting regional and seasonal water shortages. This can lead to conflicts between consumer groups.

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In recent years, Germany has tended to lose attractiveness as a location for investment projects. One reason is that commercial building permit procedures can sometimes take very long, making it difficult to accurately estimate total project costs.

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Dissatisfaction with local conditions, recessive development in the manufacturing sector, the announcement of US tariffs – the German economy is currently in a difficult economic situation.

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IfM Bonn's latest SME Barometer shows that 2025 started with a halt to the negative trend in turnover and investment seen among small and medium-sized enterprises (SMEs) in the second half of 2024.

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In recent years, entrepreneurs have been challenged constantly by new crises. This also has an impact on entrepreneurship research.

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It is uncertain how start-up activity in Germany will develop given the increased political risks in global trade. But at the same time, the measures taken by the new federal government and changes in international trade relations could give start-up activity a boost.

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The Managers at around one in three companies in the mechanical and plant engineering sector are unsure whether all relevant regulations are being implemented and whether their companies are fully compliant with the law.

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The teaching of economics in schools has been called for many years. But what is the current situation regarding the teaching of entrepreneurial thinking and action?

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A total of approximately 360,000 new businesses were founded in Germany in 2024. Around 258,000 of them were started in the commercial sector, 7,040 in agriculture and forestry, and 94,900 in the liberal professions.

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Only around a third of craft businesses in North Rhine-Westphalia currently use artificial intelligence. The main applications are chatbots, voice assistants, translation software and image and video editing.

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IfM-Bonn research indicates that the optimal level of bureaucracy has been greatly exceeded. This applies not only to the time and cost requirements, but also to the psychological costs and the knock-on effects on investment and competitiveness.

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Children of self-employed parents are often self-employed later in life. Dr. Stefan Schneck presented this in his presentation at the EBES Conference in Rome in mid-April.

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"According to a recent short survey, the vast majority of managing directors in Germany’s Mittelstand sector are calling on the new federal government to ensure reliable and consistent policy frameworks – and to refrain from excessive regulatory steering. This applies in particular to the ecological …

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