Business Climate for Solo Self-Employed Persons and Microenterprises in Germany Sees Slight Recovery
The business climate for microenterprises and solo self-employed persons in Germany recovered somewhat in January. These are the findings of the latest index for this segment (“Jimdo-ifo Business Climate Index”). This indicator rose to minus 4.9 points (not seasonally adjusted), up from minus 7.7 points (not seasonally adjusted) in December, although microentrepreneurs continue to assess their current situation as significantly worse than the economy overall (plus 9.1 points (not seasonally adjusted)). “There is a small light at the end of the tunnel,” says Klaus Wohlrabe, Head of Surveys at ifo. “Nevertheless, the situation remains serious for many microenterprises.”
The improvement in the business climate was due in particular to significantly less pessimistic expectations. However, survey respondents once again reported that their current situation had deteriorated. Some 26 percent of German microenterprises and solo self-employed persons are currently fearful about their business’s chances of survival. In December, the figure was 24.9 percent. Across the economy as a whole, 13.7 percent of companies reported concerns about their survival.
The ifo Institute has been publishing the Jimdo-ifo Business Climate Index for solo self-employed persons and microenterprises (fewer than nine employees) since August 2021. As in the composite index, all sectors of the economy are taken into account. However, its main focus is the services sector. New participants are won in collaboration with Jimdo, a provider of online tools specially geared toward the solo self employed and small businesses.
