Company's Potential Demise Worryes DIHK due to Succession Challenges
Hear it Out:
Peter Adrian, the big cheese at the German Chamber of Industry and Commerce (DIHK), is sounding the alarm bell. He's claiming that if the new federal government doesn't get their act together, we could be witnessing a mass departure of entrepreneurs. Apparently, this is what he told the "Rheinische Post" in their Wednesday edition. According to DIHK surveys, over 250,000 businesses are at risk of going under by the end of the decade if they can't find decent successors.
On the flip side, interest in starting a business is practically non-existent these days, Adrian pointed out. So, he says, it's high time the federal government did something to make being self-employed more tempting, either through succession or starting a new business. "We need swift and tangible bureaucratic reduction and relief on a broad front," Adrian urged. He specifically mentioned relief from energy, labor, and tax costs.
Moving on, on Wednesday, the conference of state economics ministers is gonna kick off in Stuttgart, with the main focus being on boosting entrepreneurship. Adrian also called on the conference to establish a clear, reliable economic policy path that the middle class, start-ups, founders, and successors can trust. "This will give them confidence in our location," he added.
Now, you might wonder, what's Germany doing to make self-employment more appealing in the first place? Well, while they're not introducing new measures specifically, Germany does support self-employment and entrepreneurship through various means:
- Freelance and Self-Employment Opportunities: Germany provides a specialized freelance visa (Freiberufler) for self-employed professionals, offering them flexibility and independence, traits that are highly valued in the German economy[4].
- Infrastructure for Entrepreneurs: Although there are no new measures to prevent a mass exodus, the existing infrastructure supports small businesses and entrepreneurs. This includes registering businesses with the tax office, obtaining necessary permits, and setting up proper accounting and tax reporting systems[4].
- Addressing Sham Self-Employment: The German coalition is taking steps to tackle "sham self-employment," which can lead to substantial back payments of social security contributions. This aims to curb unfair labor practices, but it doesn't specifically focus on making self-employment more appealing[1].
- Expanding Occupational Pensions: The government is working on expanding digital, simplified, and portable occupational pension schemes, which could benefit SMEs and potentially self-employed individuals by offering more flexible and accessible pension options[1].
All in all, although there are no specific proposals aimed at keeping entrepreneurs by making self-employment more attractive, the existing framework does provide support for entrepreneurship and independent work.
- The Federal Government's inaction might lead to a significant departure of entrepreneurs, as warned by Peter Adrian, the head of the German Chamber of Industry and Commerce (DIHK).
- Adrian emphasizes the necessity for policy changes to make self-employment more alluring, suggesting relief from energy, labor, and tax costs as potential measures.
- On Wednesday, the conference of state economics ministers in Stuttgart aims to discuss strategies for boosting entrepreneurship, with Adian urging them to establish a dependable economic policy path.
- Although new policies for self-employment are not being introduced, Germany supports freelancers and entrepreneurs through various means, such as specialized freelance visas, infrastructure assistance, measures against sham self-employment, and expanding occupational pensions.
