Major Concerns for Survival among German Solo Self-employed and Microenterprises
The business climate for microenterprises and solo self-employed persons in Germany has tumbled again, according to the latest index for this segment (“Jimdo-ifo Business Climate Index”). In October, the indicator fell to minus 25.0 points, down from minus 20.9 points in September. “The economic slowdown is particularly hard on the solo self-employed and microenterprises,” says Klaus Wohlrabe, Head of Surveys at ifo. “Concerns for survival are spreading noticeably.”
At present, 19.5 percent of the businesses in this segment consider their economic survival threatened. This is significantly more than the 7.5 percent across the economy overall.
Once again, fewer participants were satisfied with their current business, and the outlook for the coming months was markedly more pessimistic. This contrasts with the economy as a whole, where the expectations index had risen slightly. Concerns run through all industries. The outlook among microenterprises is particularly bleak in retail and in construction. Uncertainty among the solo self-employed and microenterprises again surpassed the previous month’s record.
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.
