Marked Recovery in Business Climate for Germany’s Self-Employed

The sharp rise in the business climate indicator is due to significantly less pessimistic expectations. However, many self-employed people are still a long way from optimism. There was little movement in the current business situation, where positive and negative responses are still roughly in balance. 

The situation remains difficult for the self-employed in retail; pessimism remains at its highest here. Among service providers, satisfaction with their current business is steadily increasing.

At present, 16.7 percent of the self-employed consider their economic survival threatened. In November, the figure was 19.4 percent. For the economy as a whole, however, the figure was significantly lower at 6.3 percent.

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.