Business Climate for Solo Self-Employed Persons and Microenterprises Improves
The business climate for microenterprises and solo self-employed persons rose into positive territory in February, finds the latest index for this segment (“Jimdo-ifo Business Climate Index”). The indicator rose in February to plus 2.6 points (not adjusted for seasonal effects), up from minus 4.9 points in January. However, this is still significantly below the overall economy, which is at plus 16.3 points. “A glimmer of hope has returned,” says Klaus Wohlrabe, Head of Surveys at ifo. “Many businesses are betting on an end to the pandemic.”
The businesses displayed cautious optimism concerning their expectations for the coming months, compared to the slight skepticism of January’s outlook. Survey respondents reported that their current situation had deteriorated a little.
Demand remains weak, which is a serious problem. Among microenterprises and the solo self-employed in the service sector, 41.2 percent reported a lack of orders.
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 service sector. New participants are won in collaboration with Jimdo, a provider of online tools specially geared toward the solo self-employed and small businesses.
