Major Concerns for Survival Continue among Germany’s Self-Employed
The business climate for Germany’s self-employed has recovered somewhat but remains at a low level, finds the latest index for this segment (“Jimdo-ifo Business Climate Index for the Self-Employed”). It rose to minus 21.6 points (not seasonally adjusted) in November, up from minus 25.0 points (not seasonally adjusted) in October. “However, the situation remains difficult for the self-employed,” says Klaus Wohlrabe, Head of Surveys at ifo. “They have major concerns for their survival.”
The current business situation has recovered somewhat. Positive and negative responses are roughly in balance. The solo self-employed continue to be very pessimistic about the months ahead. In the economy as a whole, the expectations index is recovering much more strongly. Nonetheless, compared with the previous month, the self-employed are somewhat less gloomy about their future. In retail and wholesale, however, more than one in two are pessimistic about the next six months.
Among the self-employed, 19.4 percent consider their economic survival threatened. This is slightly lower than the 19.7 percent recorded in October, but a significantly higher figure than in the economy as a whole.
The ifo Institute has been publishing the Jimdo-ifo Business Climate Index for the Self-Employed since August 2021. This includes both solo self-employed people and microenterprises (with fewer than nine employees). 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.
