Business Climate for Solo Self-Employed Persons and Microenterprises Takes a Plunge
The business climate for microenterprises and solo self-employed persons saw considerable deterioration, according to the latest index for this segment (“Jimdo-ifo Business Climate Index”). In September, the indicator fell to minus 20.9 points (not seasonally adjusted), down from minus 12.8 points (not seasonally adjusted) in August. “Solo self-employed persons and microenterprises cannot escape the overall trend in economic development,” says Klaus Wohlrabe, Head of Surveys at ifo. “Pessimism is taking hold.”
Companies were somewhat less satisfied with their current business. Their expectations for the coming months fell to their lowest level ever. Service providers are still the least pessimistic, although they, too, are somewhat dissatisfied with their current order books. In addition, sales increased only slightly compared with the same month of the previous year.
Uncertainty among the solo self-employed and microenterprises increased again and is now at record levels. “This uncertainty is affecting companies of all sizes equally,” Wohlrabe adds.
Around one entrepreneur in two is planning to increase prices in the next three months.
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. The index is based on a collaboration with Jimdo, a provider of online tools specially geared toward the solo self-employed and small businesses, and aims to improve the visibility of microenterprises. In addition to Jimdo, VGSD e.V. – Germany’s association of founders and self-employed people – is also helping to attract new participants.
